FILL a pot with lightly salted water and bring to a rolling boil over high heat. Stir in the macaroni, and return to a boil. Cook, uncovered, stirring occasionally, until the macaroni is cooked through but still firm to the bite, about 7 minutes. Drain. Stir in the 2 tablespoons butter, the 1/4 cup milk, and the cheese packet from the package.
STIR in the Cheddar cheese, pimento cheese spread and Kretschmar Ham dices while the macaroni is still hot and continue to stir until melted. Place the macaroni and cheese mixture in a container and refrigerate until firm, about 2 hours.
LINE a baking sheet with parchment paper. Remove the macaroni mixture from the refrigerator and use a cookie scoop to scoop the macaroni into balls. Place macaroni balls on the prepared baking sheet and freeze for at least 2 hours.
HEAT oil in a deep fryer or large saucepan to 350 degrees F (175 degrees C).
WHISK bread crumbs with paprika, chili powder, black pepper and cayenne in a shallow dish and set aside. Beat the eggs with the 3 tablespoons milk in a small bowl. Remove the mac balls from the freezer, coat in the egg wash, and then dredge in your breading.
FRY the macaroni and cheese balls in small batches until golden brown, 3 to 5 minutes per batch. Drain briefly on a paper towel-lined plate and serve hot. Dip in sauce of your choice if desired.