Cook the Pasta

Start by preheating your oven to 375°F (190°C) and greasing a 9×13-inch baking dish with nonstick spray or butter.

Bring a large pot of salted water to a boil. Add the macaroni and cook it according to the package instructions, but reduce the cooking time by 1-2 minutes. The pasta should be just al dente since it will continue cooking in the oven. Once cooked, drain the pasta and set it aside.

While the pasta cooks, begin the creamy cheddar cheese sauce. Melt the butter in a large saucepan over medium heat. Once melted, whisk in the flour to create a roux (a thick paste). Cook the roux for about 1-2 minutes, stirring constantly, to eliminate any raw flour taste.

Gradually add the warm milk and heavy cream, whisking continuously to ensure a smooth mixture. Bring the sauce to a gentle simmer, but avoid boiling. Once the sauce thickens (about 3-4 minutes), stir in the garlic powder, ground mustard, salt, and black pepper.

Reduce the heat to low and slowly add 2 ½ cups of shredded sharp cheddar cheese, stirring until melted and creamy. Add the grated Parmesan cheese for extra richness.

Add the cooked macaroni and diced ham to the cheese sauce, folding everything together until the pasta and ham are evenly coated. Pour the mixture into the prepared baking dish, spreading it out evenly with a spatula.

Add the Crunchy Topping

To make the topping, combine the panko breadcrumbs, melted butter, and smoked paprika (if using) in a small bowl. Mix until the breadcrumbs are evenly coated. Sprinkle the remaining ½ cup of shredded cheddar cheese over the macaroni, followed by the breadcrumb mixture.

Place the baking dish in the preheated oven and bake for 20-25 minutes, or until the topping is golden brown and the cheese sauce is bubbling around the edges.

For an extra crispy top, you can turn on the broiler for the last 2-3 minutes of baking. Keep a close eye on it to prevent burning.

Remove the dish from the oven and let it rest for 5 minutes before serving. This allows the cheese sauce to set slightly, making it easier to serve. Scoop generous portions and enjoy the gooey, cheesy goodness combined with savory ham and a satisfying crunch.