Preheat oven to 350 degrees. Coat a 9 x 9-inch baking dish with cooking spray and set aside.
Cook pasta according to package directions but cook al dente (not overcooked).
In the meantime, cook bacon in microwave on paper towels. Be sure to cover the bottom and top of bacon with paper towels. Cook for about 2 minutes, until crispy. Blot well with paper towels. Crumble and set aside.
Next, place milk and cottage cheese in a blender and pulse until smooth. Melt butter in a nonstick pot. Add scallions and cook for 1 minute. Add the milk/cottage cheese sauce, ¾ cup shredded cheddar cheese, Parmesan cheese, paprika, dry mustard, garlic powder, salt and a little pepper. Stir constantly, over medium heat, until cheese is melted. Stir in cooked macaroni pasta and crumbled bacon. Mix well.
Spoon mixture into baking dish and spread evenly. Sprinkle the top with ¼ cup shredded cheddar cheese. Bake uncovered for 15 minutes, until bubbly.