Heat oil in large skillet over medium heat, add onion and cook, stirring occasionally until soft. Stir in garlic and cook 1 minute longer. In large bowl combine turkey, onion, garlic, egg, milk, breadcrumbs, salt and pepper; mix well. Lightly pack mixture into greased 8 1/2 x 4 1/2 inch (22 cm x 12 cm) loaf pan. Bake at 350ºF (180ºC) for 1 to 1 1/4 hours or until juices run clear. Slice and top with Spanish Sauce.
Spanish Sauce: Heat oil in large skillet over medium heat, add onion, garlic and green pepper. Cook, stirring occasionally for 7 minutes. Stir in tomato paste, tomatoes (including juice), bay leaf, salt and pepper. Reduce heat and simmer 30 minutes or until sauce thickens. Remove bay leaf, stir in parsley. (Spanish sauce may be made ahead and reheated).
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