With the rise of large language models (LLMs), they have become instrumental in applications such as Retrieval-Augmented Generation (RAG). Yet evaluating these systems remains bottlenecked by the time and cost of building specialized assessment datasets. We introduce KNIGHT, an LLM-based, knowledge-graph-driven framework for generating multiple-choice question (MCQ) datasets from external sources. KNIGHT constructs a topic-specific knowledge graph, a structured and parsimonious summary of entities and relations, that can be reused to generate instructor-controlled difficulty levels, including multi-hop questions, without repeatedly re-feeding the full source text. This knowledge graph acts as a compressed, reusable state, making question generation a cheap read over the graph. We instantiate KNIGHT on Wikipedia/Wikidata while keeping the framework domain- and ontology-agnostic. As a case study, KNIGHT produces six MCQ datasets in History, Biology, and Mathematics. We evaluate quality on five criteria: fluency, unambiguity (single correct answer), topic relevance, option uniqueness, and answerability given the provided sources (as a proxy for hallucination). Results show that KNIGHT enables token- and cost-efficient generation from a reusable graph representation, achieves high quality across these criteria, and yields model rankings aligned with MMLU-style benchmarks, while supporting topic-specific and difficulty-controlled evaluation.