Preheat the oven to 350 degrees and line a baking sheet with unbleached parchment paper.
In a microwave safe bowl, heat the cream cheese and mozzarella cheese for 30 second intervals until completely combined into a dough. Mix intermittently.
In a medium sized mixing bowl, add the almond flour, xanthan gum, garlic powder, onion powder, Italian seasoning, egg and baking powder. Mix well.
Add the cheese mixture to the almond flour blend.
Wet your hands slightly and roll the dough into long thin logs. Pinch off 2 inch pieces of the log of dough, and wrap each piece around one of the little smokies.
Layer the mini pigs in a blanket on the prepared baking sheet.
Bake for 10-15 minutes or until browned and cooked through.
(optional) Serve with your choice of dipping sauces.