In a medium saucepan, melt butter over medium-low heat.
Add flour and whisk until smooth.
Slowly add milk, whisking constantly until mixture is smooth and thickened.
Stir in cheese, garlic powder, and onion powder.
Continue stirring until cheese is melted and sauce is creamy.
Add salt and pepper to taste.
Serve warm over chips or your favorite nachos.
Interesting Facts
The origins of nachos are disputed, with some sources tracing them to the Mexican state of Chihuahua while others believe they were invented in the United States.
Nacho cheese sauce is often made with processed cheese, such as Velveeta, but this recipe is made with real cheddar cheese.
This cheese sauce can be used for other dishes, such as mac and cheese or even on top of a baked potato.