Preheat oven to 400°
In a large skillet, saute peppers and onions. Cook until softened, about 5 minutes.
Stir in cream cheese and mix until it is melted. Add in the milk, and dry pasta.
Add seasonings: garlic powder, black pepper, salt, dried ground mustard and cayenne pepper.
Bring to a gentle boil, then reduce heat and simmer on medium heat for 10-15 minutes, stirring regularly, until pasta is cooked to al dente.
Meanwhile, combine Panko bread crumbs or cracker crumbs with butter and toss until well coated.
Once pasta is cooked, add Monterey Jack cheese and sharp cheddar cheese and stir to combine. If using an oven safe pan, top with crumbs and place in oven for 5-10 minutes to brown. Or, pour pasta into a 9x9 pan and top with bread crumbs and bake for 5-10 minutes.