The white American cheese can be found at the deli counter at most grocery stores. I just had it cut into a few large chunks and then shredded it in the food processor when I got home. It melts very smooth and creates that lovely taste and texture of restaurant queso. Also, do not Enjoy!
Queso Blanco Dip
1 tablespoon olive oil
1/4 cup yellow onion, diced
16 ounces white American cheese, shredded
4 ounces Monterrey Jack cheese, shredded
4 ounces spicy jalapeno Monterrey Jack cheese, shredded
1/4 -1 cup milk
1 Roma tomato, seeded and finely diced
In a medium saucepan, heat oil and add the onion. Saute the onion until tender, about 5 minutes. Add the shredded cheese and 1/4 cup of the milk. Stir constantly until the cheese is mostly melted. Add the tomatoes. Slowly add small additions of the milk, stirring until fully incorporated before adding the next addition. Add as much or as little you need to reach desired consistency (I used about 3/4 cup). Serve with chips.
Source: Adapted from Confections of a Foodie Bride