Meanwhile, melt 1/2 stick butter, 1/2 pound Velveeta, and 1/4 cup milk.

Grease bottom and sides of 9 x 13 inch baking dish.

Line bottom of baking dish with macaroni. Pour 1/2 of the melted cheese mixture over top. Cut remaining Velveeta into squares and place half on top. Add another layer of macaroni, cheese mixture, and Velveeta squares. Dot remaining butter on top, and pour remaining milk over the whole dish.

Bake at 350 degrees for 30 minutes or until top is golden brown.