In a large bowl, thoroughly mix dry milk powder and water. Add potatoes, egg, salt, baking powder, pepper, onion, parsley and 1/2 cup of the cheese. Mix thoroughly.
Form mixture into 6 balls. On a plate, mix remaining cheese with almonds. Roll each ball in almond mixture to coat. Place on buttered baking dish. Bake at 350° for 30 to 35 minutes until puffed and lightly browned. Dust with paprika.