Bring a medium pot of salted water to a boil. Add 2 cups dry elbow macaroni and cook until al dente (about 7–8 minutes). Drain thoroughly and return to the pot to cool slightly for 2 minutes.

Make the cheese mixture

Over low heat, add 1 tablespoon unsalted butter to the pot with the drained pasta. Add 2 ounces softened cream cheese and 1/2 cup whole milk; stir until cream cheese melts and mixture is smooth. Remove from heat and stir in 1 1/2 cups shredded sharp cheddar and 1/2 cup shredded mozzarella, mixing until melted and fully combined. Season with 3/4 teaspoon salt, 1/4 teaspoon black pepper, 1/4 teaspoon dry mustard, and 1/2 teaspoon hot sauce if using. Taste and adjust seasoning. Let mixture cool to room temperature, about 15–20 minutes, then chill in the refrigerator for 30 minutes to firm up (this helps the bites hold shape).

Breading & Frying

Prepare breading stations

Set up three shallow bowls: 1) 1/2 cup all-purpose flour seasoned lightly with a pinch of salt; 2) a beaten egg mixed with 1 tablespoon water; 3) 1 cup panko breadcrumbs combined with 2 tablespoons grated Parmesan, 1/2 teaspoon garlic powder and 1/2 teaspoon paprika.

Form bites

Line a baking sheet with parchment. Using a small cookie scoop or tablespoon, portion the chilled mac & cheese mixture into 1 1/2–2 tablespoon mounds. Roll each mound quickly between your palms to form a compact ball. If mixture is sticky, wet your hands lightly or dip them in lightly floured hands.

Bread the bites

Working in batches, dredge each mac & cheese ball first in the seasoned flour, shaking off excess, then dip into the egg wash, then coat thoroughly in the panko-Parmesan mixture. For a sturdier crust, double-dip: after the first panko coat, chill the breaded bites for 10 minutes and repeat egg + panko coating once more.

Fry the bites

Pour about 1 inch of vegetable oil into a heavy skillet and heat over medium-high until it reaches 350°F (175°C) or a small breadcrumb sizzles on contact. Fry about 6–8 bites at a time for 2–3 minutes per side, turning gently, until golden brown and crisp. Use a slotted spoon to transfer to a paper-towel–lined tray to drain. If you prefer baking, arrange on a parchment-lined sheet, spray lightly with oil, and bake at 425°F (220°C) for 12–15 minutes, turning once, until golden.

Finishing & Serving

While bites drain, warm 1/2 cup ketchup or marinara for dipping if desired. Sprinkle drained mac & cheese bites with 1 tablespoon chopped fresh parsley for color. Serve warm with dipping sauce.