In a medium saucepan combine milk, water, macaroni and salt. Cover and cook on medium heat, stirring frequently so macaroni does not stick to bottom.
Once mixture comes to a boil, lower to a simmer and cook, covered, for 3-4 minutes or until the macaroni is about half cooked. (It is better to under cook.)
Stir in cheese and mix until fully melted and well combined. Cover pot and allow to stand 5-7 minutes or until macaroni is fully cooked and sauce has thickened.