Combine Jarlsberg, parmesan, egg, flour, and baking powder in a bowl. You should be able to form a small ball with the mixture. If it is too wet, sprinkle in more flour, until the mixture is not too sticky.
Form all of the mixture into small balls.
Chill Balls in the freezer for 10-15min to firm up prior to frying, or refrigerate for 30 minutes.
Heat oil to about 350F. Fry balls a few at a time and continuously rotate them in the oil, until golden brown. They will slightly puff up in size.
In a small saucepan, combine sauce ingredients together, and simmer for 2-3 minutes.