Heat 2 tablespoons of olive oil in an oven-safe large pot or dutch oven over medium-high heat. Pre-heat oven to 300F.
Add onion to dutch oven and sauté for 2-3 minutes. Then add peppers, celery, and carrots, and sauté another 2-3 minutes. Lastly, add garlic and sauté together for 4-5 minutes until vegetables have softened.
Next, add tomato paste and stir to combine. Cook 3-4 minutes until it starts to darken slightly in color.
Now add the ground beef and pork. Break up meat gently with wooden spoon and allow to cook until no longer pink.
Once the meat has cooked through, add 1 cup of milk and allow to simmer another 5 minutes until reduced.
Next add the wine. Let sauce reduce for about 5 minutes.
Next, add crushed tomatoes, seasonings (bay leaf, salt, pepper, nutmeg, oregano, and sugar), grated parmesan, balsamic vinegar, and fresh parsley and basil. Stir to combine.
Once the sauce has started to simmer, cover and place into the oven and allow to cook for 2-3 hours. Open pot and stir once every hour to prevent sticking. Leave uncovered for last hour to allow to reduce.
When you remove the pot from the oven, the fat from the meat will have separated from the rest of the sauce. Be sure to stir the sauce well before serving. Add salt and pepper to taste.
Boil pasta according to package instructions. Drain well.
Serve pasta with desired amount of sauce and top with additional grated parmesan and fresh basil.