Prep the Gnocchi: Cook the gnocchi according to the package directions until they are just tender. Drain and set aside.
Make the Roux: In a large oven-safe skillet, melt the unsalted butter over medium heat. Once melted, add the flour, whisking continuously to form a smooth paste. Cook for about 1-2 minutes until it starts to bubble and turns a light golden color.
Add Dairy: Gradually whisk in the milk and heavy cream, ensuring there are no lumps. Continue to cook, stirring constantly, until the mixture thickens and starts to bubble.
Flavor the Sauce: Stir in the garlic powder, onion powder, and Dijon mustard. Season with salt and pepper to taste.
Add Cheese: Lower the heat to medium-low and slowly add the shredded cheddar cheese and grated Parmesan cheese. Stir continuously until the cheese has fully melted and the sauce is smooth.
Combine Gnocchi and Sauce: Gently fold the cooked gnocchi into the cheese sauce, making sure each piece is well-coated.
Top and Bake (Optional): If you like a crispy top, you can sprinkle some extra cheddar cheese on top and place the skillet under the broiler for a few minutes until the top is golden and bubbly. Keep an eye on it to avoid burning.
Garnish and Serve: Remove the skillet from the oven. Let it sit for a few minutes to set before serving. Garnish with chopped parsley if desired.