In a pot over medium heat, melt the butter. Stir in the flour, and cook for 30 seconds.
Pour in the milk, and whisk to combine. Slowly add in the cheeses, stirring until melted.
Season with garlic powder, paprika, dry mustard, salt and pepper.
Pour over the elbow pasta and mix. Pour onto a sheet pan and refrigerate for 2 hours.
Place the flour on one dish, panko on another. Season with salt and pepper. Whisk egg in a bowl. Roll balls of the macaroni and cheese, and roll in the flour, egg, and then breadcrumbs.
Heat oil to 350 degrees and fry for 2-3 minutes per side, or until golden brown.