Combine ham, breadcrumbs, egg, milk, and green peppers. Shape this mixture into individual balls. Melt fat in a skillet at medium heat. Add the ham balls to brown on all sides, turning occasionally. Remove the skillet from the heat and add hot water. Return the skillet to the heat, cover, and simmer for about 80 minutes. Serve with spiced cherry sauce (see below).
Spiced Cherry Sauce
Combine the cherry preserve, mustard, the lemon juice, and ground cloves. Place the sauce over low heat and bring just to a boil, stirring frequently.