Conventional method: Heat all ingredients in top of double boiler over hot (not boiling) water. Cook and stir until cheese is melted and mixture is blended.
Microwave: In 2 quart casserole, combine all ingredients. Cover with a glass lid. Microwave on High for 5 to 6 minutes or until cheese melts, stirring occasionally. Stir before serving. Serve with corn chips or crackers.