Combine milk and cheese in a heavy saucepan; cook over low heat, stirring until cheese melts. Remove from heat; stir in onion, salt, paprika, and hot sauce. Gradually stir one-fourth hot mixture into eggs; add to remaining hot mixture, stirring constantly. Stir in diced ham and macaroni. Pour ham mixture into a lightly greased 1 1/2- quart casserole. Bake, uncovered, at 350° for 35 minutes.