Prepare the Cheese - In a medium bowl, toss together the cheddar cheese shreds and cornstarch until evenly coated, and the powder is barely visible.
Make the Sauce - In a medium saucepan, add the cheese mixture, evaporated milk, hot sauce, and minced jalapenos. Cook over low heat, with gentle, continuous whisking until the cheese is completely melted, glossy, and just starts to thicken, about 4 to 5 minutes. Do not overcook! The sauce should reach between 150 to 160ºF. Immediately take the pan off the heat.
Serve - Quickly transfer to a serving bowl or top on desired food like nachos. The consistency will thicken more once cooled. Serve hot for the best taste. The sauce can be reheated once. See instructions in the notes section of the recipe.
Notes
Recipe Yield: About 2 cups
Serving Size: ¼ cup sauce
Cheese Options: Mild, medium, or extra-sharp cheddar cheese, Monterey Jack, or pepper jack cheese.
Substituting Cornstarch: All-purpose flour can be used in exact amounts. The sauce will be slightly thinner and may taste somewhat grainy.
Substituting Evaporated Milk: Whole milk can be used. It will be a much thinner consistency.
Storing: Cover and store in the refrigerator for up to 3 days.
Reheating: Reheat in the microwave on high, covered with plastic, in 15 to 30-second intervals, stirring in between until hot and dippable. The sauce should become smooth and hot, between 130 to 150ºF (54 to 66ºC). Only reheat once, as it will become more grainy and clumpy.