Brown beef in 10-inch skillet. Remove from heat. Drain.
Stir in Sauce Mix and hot water until dissolved. Stir in Milk and Pasta. Return to heat. Heat to boiling.
Add in green pepper and potatoes. Reduce heat to low and cover. Simmer for about 15-18 minutes, stirring occasionally, until pasta is tender. Remove from Heat.
Stir in 1/2 cup shredded Cheddar cheese just before serving.