1 pound white American cheese, cubed
1/2 cup milk, or as needed
1 tablespoon butter or margarine
2 (4 ounce) cans chopped green chilies
2 teaspoons cumin
2 teaspoons garlic powder
2 teaspoons onion powder
cayenne pepper to taste
Place cheese, milk, and butter in a medium saucepan over low heat.
Cook until cheese has melted, stirring frequently. Stir in green chilies, cumin, garlic powder, onion powder, and cayenne pepper to taste.
Add more milk if dip is too thick. Heat through and serve immediately.