Melt butter in large pot over medium-high heat. Add flour and whisk until well combined. Pour in 1 cup of water and continue to whisk until mixture begins to thicken.
Stir in remaining water, milk, and pasta.
Add in garlic powder. onion powder, hot sauce, paprika, and dijon mustard. Continue to stir until well combined.
Cook, stirring occasionally over medium- high heat, until mixture reaches a simmer.
Reduce heat to medium-low and cook for an additional 8-10 minutes.
Remove from heat and stir in cheese until melted. Season with salt and pepper to taste.