1 lg. onion, chopped
1 clove garlic, minced
1 tbsp. vegetable oil
1 tbsp. all-purpose flour
1 tbsp. chili powder
1 (10 oz.) can tomatoes and green chiles
1 lb. process cheese spread, cut into 1/2 inch cubes
1 canned jalapeno pepper, seeded and chopped (optional)

Saute onion and garlic in oil in a Dutch oven until tender but not brown. Stir flour and chili powder into onion mixture; cook over low heat 1 minute, stirring constantly.

Add tomatoes and green chiles; cook over low heat, stirring constantly, until thickened and bubbly. Add cheese and jalapeno pepper, if desired; cook over low heat, stirring frequently, until cheese is melted. Serve warm with taco or tortilla chips. Yield 3 cups.