5 years ago panelled garage attached to house replaced doors with sliders made cool family room with kitchen using same electric and plumbing kids just got mad and called zoning board says we are in violation. Now what?

You have to correct the problem by getting a permit and having the work done properly and then having the work inspected OR totally taking out all the "improvements" and having it back to being a garage. It's for your own safety to have the electrical done properly or you could have a house fire.

Did have eletrical permit bought it up to code and inspected

Either the zoning board will approve the conversion, or they won't. If they do, you're good. If they don't, you will have to covert the space back into a garage. Where I live garage conversions are both common and illegal. Generally the city doesn't get involved, because it will need to be handled by the seller when they try and sell the place. Having to admit that your 3 bedroom/2 bath house is really only 2 bedrooms because of an illegal conviction and take the hit on the price tends to be the main punishment. But yes, if the zoning board has someone hounding them on the situation, they can make you return it to the original state.