For M/EEG-based distributed source imaging, it has been established that the L2-norm-based methods are effective in imaging spatially extended sources, whereas the L1-norm-based methods are more suited for estimating focal and sparse sources. However, when the spatial extents of the sources are unknown a priori, the rationale for using either type of methods is not adequately supported. Bayesian inference by exploiting the spatio-temporal information of the patch sources holds great promise as a tool for adaptive source imaging, but both computational and methodological limitations remain to be overcome. In this paper, based on state-space modeling of the M/EEG data, we propose a fully data-driven and scalable algorithm, termed STRAPS, for M/EEG patch source imaging on high-resolution cortices. Unlike the existing algorithms, the recursive penalized least squares (RPLS) procedure is employed to efficiently estimate the source activities as opposed to the computationally demanding Kalman filtering/smoothing. Furthermore, the coefficients of the multivariate autoregressive (MVAR) model characterizing the spatial-temporal dynamics of the patch sources are estimated in a principled manner via empirical Bayes. Extensive numerical experiments demonstrate STRAPS's excellent performance in the estimation of locations, spatial extents and amplitudes of the patch sources with varying spatial extents.