Makes: 8 servings

2 pkg. (7-1/4 oz. each) KRAFT Macaroni & Cheese Dinner
2 Tbsp. KRAFT Zesty Italian Dressing
1-1/2 lb. boneless skinless chicken breasts, cut into thin strips
1 white onion, cut lengthwise in half, then cut crosswise into thin slices, divided
1 can (14.5 oz.) diced tomatoes, undrained
1 jalapeño pepper, stemmed
1 cup KRAFT Shredded Sharp Cheddar Cheese
2 Tbsp. chopped cilantro

PREPARE Dinners in large saucepan as directed on package. Meanwhile, heat dressing in large skillet. Add chicken and half the onions; cook 5 to 8 min. or until chicken is done, stirring frequently.

HEAT oven to 350ºF. Spoon Dinners into 13x9-inch baking dish sprayed with cooking spray. Top with chicken mixture. Blend tomatoes and jalapeño pepper in blender until smooth; spread over chicken mixture. Top with Cheddar; cover with foil.

BAKE 30 min. or until casserole is heated through, removing foil after 25 min. Top with cilantro and remaining onions.