In a medium saucepan, melt the butter over medium heat. Once melted, whisk in the evaporated milk and bring it to a gentle simmer. Stir occasionally to prevent the milk from scorching.
Add the Seasonings:
Once the milk is simmering, whisk in the garlic powder, onion powder, chili powder, paprika, and salt. Stir to combine the seasonings evenly with the milk.
Melt the Cheese:
Slowly add the shredded cheddar and Monterey Jack cheeses to the saucepan, stirring constantly until the cheese is fully melted and the sauce becomes smooth and creamy. Be careful not to boil the sauce, as this can cause it to separate.
Optional Thickening Step:
If you prefer a thicker cheese sauce, mix the cornstarch with a tablespoon of cold water to create a slurry. Slowly whisk the slurry into the cheese sauce while stirring constantly, then cook for an additional 1-2 minutes until the sauce thickens to your desired consistency.
Serve:
Pour the homemade nacho cheese sauce into a serving dish or use immediately as a dip for nachos, tacos, or any of your favorite dishes.
Serving and Storage Tips:
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