Heat oil in a large skillet over medium-high heat.
Add potatoes. Cook 2 to 3 minutes or until lightly browned, stirring frequently.
Add water and stir. Bring to a boil.
Reduce heat to medium and simmer 8-10 minutes or until water is absorbed.
Mix milk, cheese powder, and onion powder until smooth.
Stir into cooked potatoes until potatoes are evenly coated.
