Step 1

Let 1 cup heavy cream sit at room temperature for 30 minutes. Arrange a rack in the middle of the oven and heat the oven to 350ºF. Coat a 9x9-inch or other 2-quart baking dish with cooking spray or butter.

Step 2

Bring a large saucepan of heavily salted water to a boil over high heat. Meanwhile, dice 1 medium green bell pepper, 1 medium red bell pepper, and 1 small sweet or yellow onion. Shred 1 pound New Zealand sharp cheddar cheese on the large holes of a box grater (about 4 cups). Beat 1 large egg in a small bowl.

Step 3

Add 8 ounces macaroni to the boiling water and cook for 1 minute less than package directions. Meanwhile, heat 1 tablespoon of olive oil in a medium heavy-bottomed pot over medium heat until shimmering. Add the bell peppers and onion and cook until softened, about 8 minutes. Add 1 tablespoon cayenne pepper, 1 tablespoon dried oregano, 1 tablespoon dried parsley, 2 to 3 teaspoons garlic powder, 2 teaspoons paprika, 2 teaspoons dried thyme, and 1 teaspoon habanero hot sauce. Cook, stirring constantly, for 1 minute. Remove the pot from the heat and let cool for at least 5 minutes. Taste and season with kosher salt and black pepper as needed.

Step 4

When the macaroni is ready, drain. Add the cream and egg to the vegetable mixture and stir to combine. Add 3 tablespoons cold unsalted butter, 1 tablespoon Dijon mustard, and 1 tablespoon ketchup. Return to low heat and stir until the butter melts and the mixture is creamy, about 2 minutes. Add 3 1/2 cups of the cheese and stir to combine. Don’t worry about melting all the cheese, it will melt in the oven. Add the macaroni and stir until thoroughly coated in the cheese and pepper mixture.

Step 5

Transfer to the baking dish and spread into an even layer. Sprinkle with the remaining 1/2 cup cheese. Bake until the cheese on top is melted, about 25 minutes. Turn on the broiler and broil until the cheese on top is browned and crisp, 2 to 5 minutes.