Add chops; cook 5 to 6 min. on each side or until done (145F).
Remove from skillet; cover to keep warm.
Add salsa and water to skillet; bring to boil.
Stir in Shells and peppers. Cook on medium heat 10 min. Stir in Cheese Sauce; top with chops. Cover. Simmer on low heat 5 min. or until heated through.