Prepare Dinner in large saucepan as directed on package. Stir in 1 cup cracker crumbs, egg, bacon and jalapeno peppers until blended. Cool 20 min.
Shape into 30 balls, using scant 1/4 cup macaroni mixture for each ball. Insert 1 VELVEETA cube into center of each ball, completely enclosing VELVEETA cube.
Roll in remaining cracker crumbs until evenly coated.
Place in single layer on waxed paper-covered baking sheet.
Heat oil to 375F in deep fryer.
Add balls, a few at a time; cook 2 min. or until golden brown.