Begin by bringing a large pot of salted water to a boil. Add the macaroni and cook until al dente, about 7-8 minutes. Drain and set aside.

In a medium saucepan, melt the butter over medium heat. Whisk in the flour, stirring continuously for 1-2 minutes until golden and fragrant.

Gradually whisk in the milk, stirring for 5-7 minutes until thickened and smooth.

Lower the heat and season with salt, black pepper, and nutmeg. Stir to combine.

Reduce heat to low, stir in cheddar and Gruyere cheeses until melted and smooth. Reserve some cheddar for later.

Fold the cooked macaroni into the cheese sauce until well combined.

Stir in the reserved cheddar cheese evenly.

Spread the mixture into a greased dish and refrigerate for 2-3 hours until firm.

Prepare the breading station: place flour in one dish, whisk eggs in another, and mix breadcrumbs, garlic powder, and paprika in a third.

Cut the mac and cheese into bite-sized squares or rectangles.

Dredge each square in flour, dip in egg, and coat with panko breadcrumbs.

Heat vegetable oil in a deep pot to 350°F (175°C).

Fry the bites in batches for 2-3 minutes on each side until golden brown and crispy.

Transfer fried bites onto paper towels to drain excess oil and serve with dipping sauces.