Bring 8-10 cups of water to boil in large saucepan. This is to cook the gnocchi.
Meanwhile, prepare the cheese sauce in a large skillet, saucepan or Dutch oven. Melt the butter and whisk in the flour. Quickly whisk in the milk, so no clumps form. Bring to bubbling over low heat. Once the sauce has thickened, stir in the cream cheese until it melts. Stir in the shredded cheeses until they melt. Add the garlic powder, onion powder, salt and pepper to taste. Once sauce is finished, remove from heat.
Once the gnocchi water is ready, add the gnocchi and let cook for 1-2 minutes. Once they "float," they are ready to be removed from the pot. Add to strainer or plate with paper towel. Continuing cooking the gnocchi until they are all finished.
Toss the cooked gnocchi with the homemade cheese sauce.
Serve Gnocchi Mac & Cheese with veggies.