Preheat oven to 375°F and grease baking dish with butter.
Cook bacon in a skillet and set aside.
In a blender, blend together the cottage cheese, milk, mustard, cayenne, nutmeg, salt, and pepper.
Reserve 1/4 cup grated cheddar for topping. In a large bowl, combine remaining cheddar, milk mixture, bacon, and uncooked pasta. Pour into prepared dish, cover tightly with foil, and bake for 30 minutes.
Uncover, stir gently, sprinkle with reserved cheese, and dot with about a tablespoon of butter. Bake, uncovered, an additional 30 minutes until golden brown.