1 sm. onion, finely chopped
3 slices bacon, chopped
1 lb. processed American cheese, cubed
1 (15 oz.) can chili without beans
1 (10 oz.) can tomatoes with chilies, chopped and drained

Saute onion and bacon in a saucepan until onion is tender. Stir in cheese cubes, chili, and tomatoes. Cook until bubbly, stirring well. Serve warm with chips. Yield: 4 cups.