In a medium saucepan, we combined 3/4 cup whole milk, a pound of diced white American cheese (get it from the deli), and a 4-ounce can of hot diced green chiles. We cooked this mixture over medium-low heat, stirring frequently but not constantly, until the cheese melted and the mixture was smooth.

I liked adding a quarter of a sweet onion, minced and sauteed, but you could probably skip it.