1/2 c. finely chopped onion
1 tbsp. butter
1 (4 oz.) can chili peppers, rinsed, seeded and chopped
1/4 tsp. salt
1 1/2 c. shredded Cheddar cheese
Milk as desired (if mixture thickens while cooking)

In skillet, saute onions in butter until tender. Stir in peppers and salt. Simmer uncovered for 10 minutes. Add cheese slowly. Stir in milk, if mixture is too thick. Serve immediately with tortilla chips. Fondue.