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Preheat the oven to 350°F. Line a baking sheet with parchment or silicone baking mat. Set aside.
Stand Mixer: In a stand mixer with whisk attachment, add biscuit mix, onion powder, smoked paprika, garlic powder, and cayenne pepper. Quickly whisk together on low until spices are incorporated into biscuit mix. Switch whisk attachment out for paddle attachment. Then, add in the sausage, milk, and cheeses. Beat on low speed until well combined.
By Hand: In a large bowl, whisk to combine the biscuit mix, onion powder, smoked paprika, garlic powder, and cayenne pepper. Add in the sausage, milk, and cheeses. Use hands to mix all ingredients together, until well combined.
Gather two tablespoons of the sausage mixture using a cookie scoop and then roll into balls. Place balls on cookie sheet spaced appropriately 2 inches apart. Bake for 20-22 minutes or until sausage balls are golden brown.
While the sausage balls are baking, make the Peppered Gravy according to the package directions. Salt and cracked black pepper, if needed, to taste.Serve hot sausage balls on a platter with a bowl of warm gravy for dipping!