Mix mochiko, sugar, and water until it becomes saturated and sticks together. It may look like there's not enough water but just try pressing the crumbs down together into a dough. It should feel like the texture of an earlobe, soft but firm.
Pinch off bits of dough and roll into small ¾" to ½" balls in the palm of your hands.
Repeat for the matcha dango. Just add in the matcha powder in step 1 before mixing with water.
Bring a pot of water to a boil and cook the dango for 2-3 minutes or until they float to the surface.
Remove dango from the boiling water and transfer to a bowl of ice cold water to stop the cooking.
In a small bowl, stir together kinako and sugar. Roll the dango in kinako and serve immediately.
Notes
Serve dango immediately for the best texture or keep submerged in water for up to 1-2 hours