COOK sausage, bell pepper and onion in large skillet until sausage is no longer pink; drain. Stir in pasta and water. Cook, stirring occasionally, until mixture comes to a boil. Cover; reduce heat to low.
COOK, stirring occasionally, for 14 to 16 minutes or until pasta is tender. Stir in evaporated milk and chili sauce. Remove from heat; sprinkle with cheese. Cover; let stand for 5 minutes or until cheese is melted.