Melt margarine in 12-inch skillet over medium-high heat and cook hot dogs with onion, stirring occasionally, until browned, about 4 minutes. Remove hot dogs and onion and set aside.
Add water and milk to same skillet and bring to a boil. Add Knorr® Pasta Sides™ - Cheesy Bacon Flavor Macaroni and return to a boil. Reduce heat to medium and cook uncovered, stirring occasionally, 10 minutes or until pasta is tender.