In a large saucepan, combine the water, tomato sauce, milk, sugar, and garlic powder. Stir well and bring the mixture to a gentle simmer over medium heat.
Once the sauce is simmering, stir in the shredded cheddar cheese. Continue stirring until the cheese is fully melted and the sauce is smooth and creamy.
Pour in the uncooked pasta rings and stir to combine. Reduce the heat to low.
Let the pasta simmer gently for 15–20 minutes, stirring occasionally, until the rings are cooked through and tender.
Tip: If the sauce thickens too much while the pasta cooks, stir in a splash of milk or water to loosen it up.
Stir in the cooked meatballs and heat through for a few more minutes.
Ladle into bowls and serve warm. It’s cozy, nostalgic, and totally kid-approved!