Melt mozzarella and cream cheese together in the microwave for 1 minute, stirring every 20 seconds, or until fully melted.
Combine almond (or coconut) flour, baking powder, garlic powder, Italian seasoning, and egg. Mix well, then stir in the melted mozzarella until fully incorporated. Stir in cheddar, then shape into a ball, cover, and chill for 30 minutes in the refrigerator.
Dust a cutting board with a handful of almond (or coconut) flour. Cut dough into 4 even pieces and roll each piece into a ball. Cut each ball in half and place cut side down on a greased baking sheet.