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Place macaroni, butter, nutmeg, salt, stock and water in Instant Pot insert. Close the lid and set the valve to "sealing" position.
Press the "manual" or "pressure cook" button and set timer to 5 minutes. Make sure your Instant Pot is set to high pressure. The pressure cooker will take about 7 minutes to come to pressure and start cooking.
When the IP beeps, press "cancel/off" button and wait one minute. Then switch the valve to quickly release the pressure. Open lid carefully, away from your face.
Add milk to macaroni and stir well.
Add cheese, half of a cup at a time, until you reach desired consistency. See notes.
You can serve mac immediately or bake in a dish with breadcrumb topping, if desired.