App = Ember.Application.create();

var json_data = [
    {"color": "red"},
    {"color": "blue"}
];

App.Router.map(function() {
    this.route("index", {path: '/'});
});

App.IndexRoute = Ember.Route.extend({
    model: function() {
        return json_data;
    }
});

App.IndexController = Ember.Controller.extend({
    actions: {
        clickMe: function(event) {
            // How do I log the target element?  This is throwing an error
            console.log(event.target);
        }
    }
});

<script type="text/x-handlebars">
    <h2> Welcome to Ember.js</h2>
    {{outlet}}
</script>

<script type="text/x-handlebars" data-template-name="index">
    <h2>Inside Index</h2>

    <ul>
        {{#each model}}
            <li {{bind-attr class=color}} {{action 'clickMe'}}>Click here: {{color}}</li>
        {{/each}}
    </ul>
</script>