Cheesy Sausage Skillet

1 lb ground mild Italian sausage
1 each: sm onion, green pepper, and red pepper, sliced
1 c milk
2 c water
14 oz box Kraft Deluxe 4 Cheese Mac N Cheese dinner

Cook sausage and vegetables in nonstick skillet on medium-high heat 10 minutes or until sausage is done, stirring occasionally. Add milk, water, and macaroni; stir. Bring to a boil; cover. Simmer on medium-low heat 8-10 min or until macaroni is tender, stirring occasionally. Stir in cheese sauce; cook and stir until heated through.