1. Melt butter in a medium saucepan over medium heat.
2. Add onion, garlic, and jalapeño, and sauté until softened.
3. Stir in cumin, paprika, and salt.
4. Gradually add milk while stirring, and let it warm up without boiling.
5. Slowly add cheddar and Monterey Jack cheeses, a handful at a time, stirring until fully melted.
6. Mix in the drained diced tomatoes with green chilies.
7. Cook for another 2-3 minutes, stirring until smooth.
8. Remove from heat, garnish with fresh cilantro, and serve warm with tortilla chips.
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