I found burial records for this family in the Westville cemetery, I believe at the USGen web site for LaPorte County.
In researching my own Michael family, who lived in West Creek Township, near Lowell, in Lake County, IN, I came across several references to Westville during the time frame you mention. My great, great grand father, John J. Michael(1811-1896) settled in Lake County in 1839, moving there from western NY state via Jackson County MI. In 1847 his first wife, Wealthy Ann Greene (1821-47) died, leaving him with two sons, Edwin and William, to raise. He married a widow, Eliza Whittenbeck, who had returned to Westville after her husband died. John J. Michael purchased her parents' farm near Westville. He also sent his two sons to high school in Westville during the mid 1850's. It is not clear whether it was a boarding school or whether they stayed with relatives. The elder son Edwin spent several years teaching in Westville before serving in Indian 99th Infantry during the Civil War.
John J. Michael's father, Abraham Michael, operated a sawmill in Schoharie County NY, c. 1814-1821. He was married to Margaret Weatherwax. Her mother, Catharina Grauberger, was a confirmed descendant of the Palatine debtors of 1710 who were settled on Livingston Estate along the Hudson River. Abraham Michael was almost certainly of German ancestry.
Your immigrant Michael family in the 1860's is the first reference I've seen to German immigrant Michael families during the 19th century. It would be of interest to many researchers if you could connect this family to the German Michael families who settled in eastern and central Pennsylvania in the mid 18th century and then moved primarily to NC and some later into central and southen Indiana.