BROWN meat with mushrooms in large skillet; drain. Return meat mixture to skillet. Add milk, water, Seasoning Mix and Pasta; stir. Bring to boil. Reduce heat to medium-low; cover.
SIMMER 8 to 10 min. or until pasta is tender and most of the liquid is absorbed, stirring frequently. Remove from heat.
STIR in VELVEETA Cheese Sauce.