Gather all the ingredients listed in the recipe and measure them accurately before starting. This will ensure a smooth and hassle-free cooking process.

Begin by cubing the American cheese into small pieces for easy melting and even distribution in the dip.

Heat a large saucepan over medium heat and sauté the onions and minced garlic until they become translucent. Be careful not to brown them, as it may alter the flavor.

Once the onions and garlic are cooked, add in the canned green chilies with their juice and diced ripe tomatoes. Stir well to combine.

Gradually add in the cubed American cheese while constantly stirring to prevent any clumps from forming. Slowly pour in the milk while stirring until it reaches your desired consistency.

Reduce the heat to low and let all the ingredients simmer together, stirring occasionally. Once fully combined and heated through, remove from heat and transfer to a serving dish.