Here's how I'd write your code:
increasing :: Integer -> [Integer]
increasing 1 = [1..9]
increasing n = let allEndings x = map (10*x +) [x `mod` 10 .. 9]
in concatMap allEndings $ increasing (n - 1)
I arrived at this code as follows. The first thing I did was to use pattern matching instead of guards, since it's clearer here. The next thing I did was to eliminate the liftM2s. They're unnecessary here, because they're always called with one size-one list; in that case, it's the same as calling map. So liftM2 (*) ps [10] is just map (* 10) ps, and similarly for the other call sites. If you want a general replacement for liftM2, though, you can use Control.Applicative's <$> (which is just fmap) and <*> to replace liftMn for any n: liftMn f a b c ... z becomes f <$> a <*> b <*> c <*> ... <*> z. Whether or not it's nicer is a matter of taste; I happen to like it.1 But here, we can eliminate that entirely.
The next place I simplified the original code is the do .... You never actually take advantage of the fact that you're in a do-block, and so that code can become
let ps = increasing (n - 1)
last = map (`mod` 10) ps
next = map (* 10) ps
in alternateEndings next last
From here, arriving at my code essentially involved writing fusing all of your maps together. One of the only remaining calls that wasn't a map was zipWith. But because you effectively have zipWith alts next last, you only work with 10*p and p `mod` 10 at the same time, so we can calculate them in the same function. This leads to
let ps = increasing (n - 1)
in concat $ map alts ps
where alts p = map (10*p +) [y `mod` 10..9]
And this is basically my code: concat $ map ... should always become concatMap (which, incidentally, is =<< in the list monad), we only use ps once so we can fold it in, and I prefer let to where.
1: Technically, this only works for Applicatives, so if you happen to be using a monad which hasn't been made one, <$> is `liftM` and <*> is `ap`. All monads can be made applicative functors, though, and many of them have been.