Combine crumbs with milk in medium-size bowl. Add beef; mix well. Divide into 12 equal portions; shape each into a ball.
Heat nonstick straight-sided 10-inch skillet over medium-high heat. Add meatballs; brown all over, about 6 minutes. Remove meatballs from skillet. Add onion; saute until softened, about 8 minutes.
Add diced tomatoes, tomato sauce, water and olives. Bring to boiling. Stir in elbow pasta. Add meatballs; cover; simmer 15 minutes or until meatballs are cooked through and pasta is tender.
Sprinkle with shredded Parmesan cheese, if desired. Makes 6 servings.