No straining, no roux, no baking. By boiling the macaroni in milk and water, the pasta starch emulsifies with the liquid to create an ultra-creamy base for the cheese. It's faster than the boxed stuff and tastes infinitely better.

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Combine macaroni, whole milk, water, butter, mustard powder, cayenne pepper, and salt in a large pot. Bring to a boil over medium-high heat.
steadily, stirring often to prevent sticking, until the pasta is tender and the liquid has to a thin creamy sauce (about 8-10 minutes). Do not let it boil dry - add a splash more water if needed.
Remove from heat immediately. Stir in the cream cheese until dissolved. Then add the sharp cheddar cheese in handfuls, stirring constantly until melted and smooth.
Serve immediately. The sauce will thicken rapidly as it cools.