In a large skillet, cook beef over medium heat until no longer pink; drain. Stir in the beans, chilies, taco seasoning and hot salsa.
In a greased 9x13 back dish, layer a third of the noodles and meat mixture. Sprinkle with 1 cup of cheese. Repeat layers twice.
Combine Mild Salsa and water; pour over the top. Cover and bake at 350* for 1 hour or until heated through. Top with sour cream, olives, onions, tomatoes (if desired) and remaining cheese. Bake uncovered 5 minutes londer. Let stand 10-15 minutes before cutting.