01 - Cook macaroni in salted boiling water according to package directions. Drain and set aside.
02 - In a saucepan, melt butter over medium heat. Whisk in flour and cook for 1 minute.
03 - Gradually add milk, whisking constantly until smooth and slightly thickened, about 2-3 minutes.
04 - Stir in cheddar cheese, pepper jack cheese, Dijon mustard, smoked paprika, salt, and black pepper until cheese is melted and sauce is smooth.
05 - Fold the cooked macaroni into the cheese sauce until thoroughly combined. Spread the mixture onto a baking sheet and allow to cool completely. Refrigerate for at least 1 hour until firm.
06 - In a microwave-safe bowl, combine processed cheese, diced jalapeños, diced tomatoes, and milk. Microwave in 30-second intervals, stirring between each, until smooth and melted. Let cool completely.
07 - Take 2 tablespoons of chilled macaroni and cheese mixture and flatten into a disc. Place 1 teaspoon of the cooled queso filling in the center. Encase the filling with the macaroni and cheese, forming a tight ball. Repeat with the remaining mixture.
08 - Place all-purpose flour in one shallow bowl, beaten eggs in another, and a mixture of panko breadcrumbs, chili powder, and garlic powder in a third.
09 - Roll each macaroni and cheese ball first in flour, then dip in the beaten egg, and finally coat thoroughly with the seasoned panko mixture.
10 - Place the breaded balls in the freezer for 15 minutes to firm up before frying.
11 - Heat vegetable oil in a deep fryer or heavy pot to 350°F (175°C). Carefully fry the balls in batches until golden brown and crispy, approximately 2-3 minutes per batch. Remove with a slotted spoon or spider and drain on paper towels.
12 - Serve hot. Optionally, accompany with ranch dressing or salsa for dipping.