Heat butter in a large skillet. Cook macaroni and next 4 ingredients for 5 minutes, stirring frequently. Add water and milk; heat to boiling temperature. Simmer uncovered 10-15 minutes or until macaroni is tender. Remove from heat; stir in cheese until melted through.
This is always a favorite!! Feel free to play around with this basic recipe adding vegetables (tomatoes are great) and other cheeses, such as sharp cheddar or monterey jack.