In a large bowl, combine mashed potatoes, cheese, chives, cayenne pepper and bacon. Using a small cookie scoop, roll the mixture into 1 1/4-to-1 1/2-inch balls, forming about 25. Working one at a time, dip balls into eggs, then dredge in Panko, pressing to coat.
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Place cube of Cheddar in the center and wrap the potato mixture around the cheese. Repeat for the remaining balls. Place Flour, Bread Crumbs, and remaining egg in three separate bowls. Coat the potato ball in flour, then eggs, then bread crumbs. Fry the potatoes in batches until crispy and golden on all sides, about 8-10 mins.
Place cube of Cheddar in the center and wrap the potato mixture around the cheese. Repeat for the remaining balls. Place Flour, Bread Crumbs, and remaining egg in three separate bowls. Coat the potato ball in flour, then eggs, then bread crumbs.