Preheat the oven to 400°F. Oil a baking sheet, or line with parchment paper, and set aside. Place the cauliflower florets with 1/2 cup of water in a medium saucepan, cover the pot, place over medium-high heat and bring to a boil over high heat. Reduce the heat to medium low and simmer until just tender, about 10 minutes. Drain and place the chopped cauliflower in a food processor. Pulse the cauliflower until it is in very small pieces, essentially a grated rice-like consistency.
Place the cauliflower on a clean kitchen towel, roll it up, and twist and squeeze it over the kitchen sink until you have removed as much moisture from the cauliflower as possible.
Lightly beat the egg in a medium sized bowl, and mix in the cheddar, Parmesan, Panko, and salt and pepper. Add the cauliflower and stir to combine. Scoop out rounded tablespoons of the mixture and form them into cylindrical shapes and place on the prepared baking sheet. Bake for about 20 minutes, until the caulitots are golden and firm. Serve hot.