1 (16 ounce) package macaroni
1 (4.5 ounce) package dry onion soup mix
1 (4.5 ounce) package dry Italian-style salad dressing
2 tablespoons butter
salt and pepper to taste
1 cup water
4 cups shredded Cheddar cheese, divided
1 (8 ounce) package cream cheese, softened
1/4 cup grated Parmesan cheese
1/2 teaspoon garlic powder
Preheat oven to 400 degrees F (200 degrees C). Top pasta, then pour soup in a medium bowl and sprinkle with salt and pepper to taste.
In a large pot over medium heat, melt 2 remaining Cheddar cheese, and stir in 1/2 of the remaining cheese. Saute mixture until cheese is melted and mixture is thick. Add remaining 4 ounces of cheese, a little at a time, until well blended. Add water if mixture becomes too thick or too dry. Simmer until cheese is cooked and mixture is just slightly thick.
Heat 2 tablespoons butter in a medium skillet over medium heat. Cook onion soup until tender; mix in remaining 4 ounces of cheese and liquid. Add a little water if mixture becomes too watery. Stir in cream cheese, Parmesan cheese, garlic powder, and salt and pepper to taste. Simmer, covered, until cheese is heated through, about 10 minutes.