Preheat oven to 350 degrees F. In a medium saucepan, melt butter over medium heat. Stir in the flour until completely combined, then slowly whisk in the milk until smooth. Bring to a simmer and cook until starting to thicken, about 3-4 minutes. Slowly whisk in 8 ounces of shredded cheese until completely melted. Season with chili powder, granulated garlic, salt and pepper. Keep warm over low heat.
Spread the mini corn dogs in an even layer on a baking sheet and bake for 15-18 minutes, flipping once.
In a large skillet, heat olive oil over medium heat. Brown sausage, breaking into pieces, until golden and cooked through, about 5-8 minutes. Remove corn dogs from the oven and top with 4 ounces shredded cheese, then spoon over cooked sausage. Top with another 4 ounces of cheese and return to the oven to bake until cheeses are melted, about 10 minutes.
Remove from oven and top with pico de gallo, jalapeno slices, sour cream and cilantro leaves.