Form the leftover macaroni and cheese into 12 small balls.
In a pie plate or shallow dish, whisk together the egg, water and the hot sauce. In a second pie plate or shallow dish combine the flour, chili powder, and salt and pepper, to taste.
In a deep-sided skillet heat the canola oil over medium heat to 350 degrees F.
Coat the macaroni and cheese balls in the egg mixture. Put into the seasoned flour mixture, making sure they are completely coated.
Fry in hot oil, in batches, until golden brown, about 4 minutes. Remove from the oil and drain on a plate lined with a paper bag. Transfer to a serving dish and serve hot.