Preheat your oven to 375°F. While it heats, prepare a 13×9-inch baking dish by greasing it with butter. This will ensure that your Baked Macaroni and Cheese comes out beautifully and doesn’t stick.
Bring a large pot of salted water to a boil. Add in the elbow macaroni and cook for about 7 minutes, just shy of al dente. You want it firm since it will cook more in the oven. Drain the pasta and set it aside.
In a medium saucepan or Dutch oven, melt 5 tablespoons of Challenge Salted Butter over medium heat. Once melted, whisk in the flour and cook for 1-2 minutes, stirring constantly. This will create a roux, which is essential for thickening the cheese sauce.
Gradually stream in the whole milk, whisking continuously to avoid lumps. Cook over medium heat, stirring until the mixture begins to bubble and thickens. It should coat the back of a spoon nicely.
Now, add in the Challenge Cream Cheese and whisk until it's completely melted and incorporated into the sauce. This will make your cheese sauce incredibly creamy.
Slowly mix in the sharp cheddar cheese and half of the parmesan cheese, a handful at a time. Make sure each addition melts completely before adding more. This ensures a silky texture.
Stir in the mustard, hot sauce, and season with salt and pepper to taste. This adds a depth of flavor that enhances the cheese.
Fold the cooked elbow macaroni into the cheese sauce until fully coated. Pour the entire mixture into the greased baking dish, spreading it evenly.
Sprinkle the remaining parmesan cheese over the top. In a separate skillet, melt the remaining 2 tablespoons of Challenge Salted Butter over medium heat, then stir in the panko breadcrumbs. Cook for 2-3 minutes until lightly golden and crispy.
Evenly sprinkle the toasted panko over the macaroni and cheese. Bake for 25-30 minutes, until the top is golden brown and bubbly. The aroma will fill your kitchen!