It's about $6.50 for a jar of this. The brand I have in mind is Tostitos Nacho cheese.

[Retrograde]

4. I'd use an actual cheese

instead of Velveeta - I can usually find large blocks of cheddar or Monterey Jack in local groceries - and up the amount of pepper, but otherwise it sounds good. I've thinking about what to do for dinner tonight

Decades ago I found a recipe (can't remember where) for chile con queso, that started with sauteeing diced chiles, onions, and tomatoes, and adding cream cheese, diluting with milk until you got the consistency you want. I still occasionally make it with and serve it with tortillas or tortilla chips for brunch. I prefer my nachos the original way Nacho made them - individual tortilla chips with a piece of jalapeno and a piece of cheese on them, under the broiler just long enough for the cheese to start to melt. Although I made these for a party once and no one touched them. Nothing against chips piled on a plate and stuff glopped over them, but IMHO that's something else.