Bring a large pot of salted water to a boil. Add the gnocchi and cook according to package instructions until they float to the surface, about 2-3 minutes. Drain and set aside.

In a saucepan, melt the butter over medium heat. Whisk in the flour and cook for 1-2 minutes until golden.

Gradually whisk in the milk, stirring constantly until the mixture thickens, about 5-7 minutes.

Remove from heat and stir in the cheddar and gruyère cheeses until melted and smooth. Add garlic powder, onion powder, salt, pepper, and truffle oil. Mix well.

Preheat the oven to 350°F (175°C). In a large bowl, combine the cooked gnocchi and cheese sauce, mixing until well coated.

Transfer the mixture to a baking dish. In a small bowl, mix the panko breadcrumbs, parmesan cheese, and olive oil. Sprinkle over the top of the mac and cheese.

Bake in the preheated oven for 20-25 minutes until golden and bubbly.