Add pasta and liquid: Pour the macaroni into the Instant Pot. Add water or broth to just cover the noodles (about 4 cups).
Stir in salt, garlic powder, onion powder, and mustard if using.
Pressure cook: Seal the lid and set to Manual/Pressure Cook on High for 4 minutes. The pot will take a few minutes to come to pressure.
Quick release: As soon as the timer ends, carefully perform a quick release. Open the lid and give the pasta a gentle stir.
There should be a small amount of starchy liquid left—that’s good.
Stir in butter: Add the butter and stir until melted and glossy.
Add dairy: Pour in the evaporated milk or half-and-half. Stir to combine and let the pot sit on Keep Warm. If using cream cheese, add it now and stir until melted.
Add cheeses gradually: Sprinkle in the shredded cheddar and Monterey Jack in small handfuls, stirring well after each addition.
This helps the cheese melt smoothly without clumping.
Season to finish: Add black pepper and taste. Adjust salt, add a few dashes of hot sauce if you like, and stir until the sauce is silky and coats the pasta.
Rest briefly: Let the mac and cheese rest for 2–3 minutes to thicken slightly. If it gets too thick, splash in a bit more warm milk to loosen.
Serve hot: Spoon into bowls and enjoy as is, or top with toasted breadcrumbs, crumbled bacon, or chopped chives.