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Creamy Baked Mac and Cheese

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Ingredients:
16 ounces elbow macaroni (about 3 cups)
3 tablespoons butter or margarine
1 ½ cups milk, divided
2 large eggs, lightly beaten
1 lb (16-ounces) cubed (1/2 inch size) Velveeta cheese
8 ounce shredded Kraft Mild Cheddar Cheese (about 2 cups), divided
8 ounce shredded Kraft Monterrey Jack Cheese
1 teaspoon salt
1 teaspoon freshly ground black pepper

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