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Mix together the flour, pepper, and salt in a bowl. Add the egg and yolks to the bowl and pour in the milk. Stir well to make a thick batter like consistency.
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Prepare the smoked ham or bacon by cutting it into small cubes. Mince the garlic cloves and finely chop the dill and chives.
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Bring a pot of water to a boil over high heat.
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Using a large colander, add about 1/3 of the spaetzle batter to it. Hold the colander over boiling water and stir the batter with a ladle or spoon, pressing it through the holes in the bottom and side to assist it in dropping into the hot water to cook. Let the spaetzle cook 3-5 minutes or until firm and tender to the bite. Transfer the cooked spaetzle to with a slotted spoon to another colander or bowl between cooking each batch.
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Heat the butter in a saute pan over medium heat. Add garlic and mustard seeds to the pan and allow them to cook 2-3 minutes, stirring frequently so the garlic doesn’t burn. Add the ham to the pan and continue to cook until it’s become crisp around the outside; approximately 8 -10 minutes.
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Transfer the spaetzle to the pan and stir to coat it in butter, mustard seeds and mix well with the ham. Add the dill to the pan and stir again.
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Turn off the heat and add the rest of the chives to the spaetzle, stir and serve immediately.