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Step 1
Heat butter in a small saucepan on medium-low heat until melted. Whisk in the flour. Add the milk and half of the cheese.
Step 2
Whisk until the cheese has melted and then add the remaining cheese. Continue to whisk until bubbly. The cheese sauce will be smooth and creamy.
Step 3
Add in the green chilis, cayenne pepper, and garlic powder. Whisk to combine and cook 1 more minute.
Step 4
Serve with tortilla chips and pico de gallo.