Melt butter in a large saucepan over medium heat and sautÈ green pepper and onion for 5 minutes, or until tender. Stir in the tomato soup, chicken & rice soup and the water and bring to boil. Reduce heat to low and allow simmering. Meanwhile, in a separate bowl, combine the ground beef, egg and milk. Break the bread into very small pieces and add to the bowl. Mix together well. Shape the meat mixture into meatballs and drop them into the soup mixture. Continue to simmer over low heat, uncovered, for 45 to 60 minutes. Stir occasionally.