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Set Instant Pot to Saute function.
Add olive oil and shallot and saute until sizzling and fragrant, about 2 minutes. Add water, salt and macaroni and give a good stir. Set Instant Pot to pressure cook, on high, for 4 minutes. Manually release.
Stir the pasta, there will be a little water, this is OK. Stir in the butter, evaporated milk, and mustard. Stir in the cheese a cup at a time, until fully melted and incorporated. Taste, add more mustard for extra tanginess.
As the macaroni and cheese sits, it will thicken up beautifully.
Feel free to garnish with Everything Bagel Spice, Chili flakes, or Sriracha.