Cook macaroni according to package directions; drain and set aside.
Meanwhile, in a Dutch oven, cook bacon over medium heat until crisp. Using a slotted spoon, remove to paper towels; drain, reserving 1 tablespoon drippings. Saute jalapeno in reserved drippings. Add milk and cheeses to pan; cook and stir until blended. Stir in the onion powder, chili powder, salt, pepper and pepper sauce. Add the onions, cooked bacon and reserved pasta to pan; mix well.
Transfer to a greased 13-in. x 9-in. baking dish. Cover and bake at 350° for 30 minutes. Uncover; bake 10-15 minutes longer or until heated through. Yield: 16 servings (3/4 cup each).