Combine water, elbow macaroni, mustard powder, salt, and hot sauce in an electric pressure cooker (such as Instant Pot(R)). Close and lock the lid. Set to high pressure according to manufacturer's instructions and cook for 4 minutes. Allow up to 10 minutes for pressure to build.
Release pressure carefully using the quick-release method according to manufacturer's instructions, about 5 minutes. Unlock and remove lid. Switch to Low Saute function by pressing Saute once and Adjust twice. Stir macaroni to separate any clumps.
Stir evaporated milk, milk, and butter into the pot. Add Cheddar cheese and Monterey Jack cheese gradually, stirring constantly until melted. Stir in ham and peas. Season with salt and pepper.
