Finely dice the onion into 1/4-inch pieces and mince the 2 garlic cloves for the meatball mixture. In a large bowl, combine the ground turkey, diced onion, minced garlic, egg, panko, freshly grated parmesan, parsley, basil, lemon juice, salt, and pepper. Mix gently with your hands until just combined—overmixing makes tough meatballs. Chill the mixture for 30 minutes to help it hold together better. While chilling, preheat your oven to 180°C (355°F) and line a baking sheet with parchment paper. After chilling, form the mixture into 16 equal meatballs and place them on the prepared sheet, spacing them about 1 inch apart.
Bake the meatballs for 15-20 minutes until they reach an internal temperature of 74°C (165°F). I like to check them at the 15-minute mark to ensure they don't overcook and dry out. While the meatballs bake, you can prepare the sauce components in the next step.
Heat 1 tsp olive oil in a large saucepan over medium heat. Cut the red bell pepper into 1/2-inch chunks and mince the remaining 1 garlic clove. Sauté the diced bell pepper and minced garlic for 3-4 minutes until softened and fragrant. Pour in the chicken broth and bring to a simmer, then let it cook for 5 minutes to allow the flavors to meld. Add the sundried tomatoes and 1.7 oz freshly grated parmesan, then remove from heat and use an immersion blender to puree until smooth and creamy—this creates the signature silky texture of this dish.
Stir the full-fat Greek yogurt into the pureed sauce from Step 3, then add the remaining 1/2 lemon juice, 1/2 tsp dried oregano, salt, and pepper to taste. I prefer full-fat Greek yogurt here because it creates a richer, more luxurious sauce that doesn't split under heat. Keep the sauce warm on low heat while you prepare for assembly.
Transfer the baked meatballs from Step 2 to a broiler-safe baking dish or shallow oven-safe skillet. Pour the yogurt sauce from Step 4 over the meatballs, coating them evenly. Scatter 1.7 oz freshly grated parmesan over the top, then place under the broiler (about 6 inches from the heat source) for 3-5 minutes until the sauce is bubbling around the edges and the cheese begins to brown. Watch carefully to prevent burning. Remove from the broiler and immediately garnish with fresh basil and toasted pine nuts.