Try option (MAXRECURSION 0).
This is by far the slowest of the CTE-based row (number) generation methods but as your code shows it's very easy to manipulate rCTE's to generate quite complex output.
For fast, accurate and documented assistance in answering your questions, please read this article.
Understanding and using APPLY, (I) and (II) Paul White
Hidden RBAR: Triangular Joins / The "Numbers" or "Tally" Table: What it is and how it replaces a loop Jeff Moden