Step 1: Parameterize the surface.
We are given the equation of the paraboloid \( x^2 + y^2 + z = 8 \), so \( z = 8 - x^2 - y^2 \). The region of interest is the area inside the cylinder \( x^2 + y^2 = 4 \).
Step 2: Use polar coordinates.
Convert the integral to polar coordinates, where \( x = r \cos \theta \) and \( y = r \sin \theta \). The area element in polar coordinates is \( r \, dr \, d\theta \), and the surface area formula becomes:
\[
A = \iint_S \sqrt{1 + \left( \frac{\partial z}{\partial x} \right)^2 + \left( \frac{\partial z}{\partial y} \right)^2} \, dA.
\]
Step 3: Set up the integral.
After substituting the expressions for \( z \), compute the integrals, and you will get the result \( \pi (17^{3/2} - 1) \).
Step 4: Conclusion.
Thus, the correct answer is \( \boxed{(B)} \).