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Mix mochiko, sugar, and water until it becomes saturated and sticks together. It may look like there's not enough water but just try pressing the crumbs down together into a dough. It should feel like the texture of an earlobe, soft but firm.
Pinch off bits of dough and roll into small ¾" to ½" balls in the palm of your hands.
Repeat for the matcha dango. Just add in the matcha powder in step 1 before mixing with water.
Bring a pot of water to a boil and cook the dango for 2-3 minutes or until they float to the surface.
Remove dango from the boiling water and transfer to a bowl of ice cold water to stop the cooking.
In a small bowl, stir together kinako and sugar. Roll the dango in kinako and serve immediately.