COOK potatoes in boiling water in large saucepan 15 to 20 min. or until tender; drain. Cool 10 min. Mash potatoes until smooth. Add onions, egg and pepper; mix just until blended.
HEAT oven to 400ºF. Roll potato mixture into 24 balls, using about 2 Tbsp. for each. Insert 1 Velveeta cube into centre of each ball, completely enclosing Velveeta cube with potato mixture. Place potato balls on baking sheet covered with coating mix; turn until evenly coated. Place on clean baking sheet.
BAKE 14 to 16 min. or until heated through. Serve with salsa.
