This homemade nacho cheese sauce comes together with just five simple ingredients — butter, flour, milk, cheddar, and salt — cooked into a smooth, creamy dip for just $0.26 a serving.
This is the dip I make for every single family gathering and party — I set it out warm with a big bowl of tortilla chips and it disappears faster than anything else on the table every single time. After 14+ years of making recipes for my family, I know the homemade version of a classic party dip is always worth the extra 10 minutes, and this cheese sauce proves it.
Why You’ll Love This Recipe!
- Budget Friendly Dip — $3.16 total versus $4–5 for a jar of store-bought nacho cheese
- Only 5 ingredients
- Ready in 10 minutes from start to finish
- Smooth and creamy every time
- Made with real cheddar — no processed cheese no artificial ingredients
- Perfect for every party gathering, game day and nacho night
This is one of our favorite snack recipes to make because of how easy it is to make. If you made our Queso Fundido, American Cheese Sauce or Best Mexican White Cheese Dip Recipe then you will love this cheese sauce recipe.
Pair it with my air fryer tortilla chips and let your guests enjoy.
Ingredients
- Butter — forms the base of the roux that gives the sauce its smooth creamy consistency. Unsalted gives you the most control over the final saltiness
- Flour — combined with the butter to create the roux. All purpose flour is all you need — do not substitute with cornstarch as it gives a different texture
- Whole milk — whisked into the roux to create the smooth sauce base. Whole milk gives the richest creamiest result. 2% works but the sauce will be slightly thinner
- Cheddar cheese, shredded — always shred fresh from a block. Sharp cheddar gives the boldest most authentic nacho cheese flavor. Medium cheddar gives a milder result. Never use pre-shredded from a bag. For a guaranteed-smooth texture, substitute 2-3 ounces of the cheddar with processed American cheese (like Velveeta) — it melts more reliably than cheddar alone, while the cheddar still carries most of the flavor.
- Salt — balances the richness of the cheese and butter. Always taste before serving and adjust
Carrie’s Tip: Always shred the cheese fresh from a block — never use pre-shredded cheese from a bag. Pre-shredded cheese is coated with anti-caking starches that prevent it from melting smoothly and will make your sauce grainy and lumpy. A freshly shredded block of sharp cheddar melts into the sauce perfectly in seconds.
How to Make Nacho Cheese Sauce
Step 1 – Add the flour and butter together in a small sauce pan.
Step 2 – Whisk the ingredients together until everything is combined really well and it starts to thicken. Keep doing this for about a minute. You are essentially making a roux that will thicken the cheese sauce. Add the cup milk and whisk together.
Step 3 – Slowly add the shredded cheese. I like to do a little at a time. Whisk this mixture until all the cheese has been added and everything is combined really well.
Step 4 – The only thing left to do is stir in the salt. Serve and enjoy while warm.
Tips for Success
- Always use freshly shredded cheese. Pre-shredded cheese has anti-caking agents that make the sauce grainy — always shred fresh from a block for a perfectly smooth result
- Whisk constantly while making the roux. Constant whisking prevents lumps and ensures the butter and flour cook evenly — stop whisking and the roux can burn on the bottom
- Add the milk slowly. Pouring all the milk in at once can cause lumps — add it gradually whisking constantly for the smoothest sauce
- Remove from heat before adding the cheese. Adding the cheese while the pan is still on high heat can cause it to seize and turn grainy — remove from heat first and let the residual warmth melt the cheese gently
- Keep warm for serving. Transfer to a small slow cooker or fondue pot set to warm to keep the sauce at the perfect dipping consistency throughout your entire party
Ways to Use Cheese Sauce
- Easy Nacho Bar– This cheese sauce is perfect to serve with a nacho bar. It will be delicious!
- Oven nachos – Nacho cheese is a great idea for this amazing recipe.
- Crock Pot Ground Chicken Tacos – Everything is better with cheese sauce.
- The Best Shrimp Tacos – love these with nacho cheese.
- Game Day – serve with tortilla chips for a great snack.
- Soft Pretzel Bites Recipe – Serve these pretzel bites with this delicious homemade cheese sauce recipe.
- Air Fryer Tater Tots Recipe – These tator tots are my kids favorite side to serve with this creamy cheese sauce.
- Easy Homemade French Fries – There is nothing better the cheese fries.
Make a double batch and use the extra the next night stirred into cooked pasta and ground beef for an easy homemade cheeseburger noodle skillet. One pot of sauce, two completely different dinners.
Variations and Substitutions
- Swap sharp cheddar cheese for pepper jack for a spicier version of this nacho cheese dip with a kick of heat
- Add a pinch of cayenne pepper or a dash of hot sauce for extra heat
- Add a teaspoon of taco seasoning for a Tex-Mex twist
- Stir in diced jalapeños for a chunky spicy nacho cheese
- Use Gruyere or Monterey Jack for a milder more sophisticated flavor
- Add a tablespoon of cream cheese for an even richer creamier result
- Stir in 2-3 tablespoons of pickled jalapeño juice (from a jar of pickled jalapeños) for a tangy, spicy, movie-theater-style flavor.
Making this Recipe for a Crowd
This recipe makes 12 servings — plenty for a small gathering. Here’s how to make it for a bigger crowd:
- Double (2x): 4 Tbsp butter, 4 Tbsp flour, 2½ cups whole milk, 16 oz. cheddar, 1 tsp salt — serves about 24
- Triple (3x): 6 Tbsp butter, 6 Tbsp flour, 3¾ cups whole milk, 24 oz. cheddar, 1½ tsp salt — serves about 36
Use the largest saucepan you have, and add the cheese in smaller handfuls than usual — the more cheese you’re melting at once, the easier it is for the sauce to turn grainy, so a little patience pays off for a big batch.
Storage and Freezer Instructions
Refrigerator
- Store in an airtight container for up to 3–4 days. The sauce thickens significantly when cold which is completely normal
Freezer
- Not recommended — cheese sauces made with a milk roux can separate and become grainy when frozen and thawed. Make only what you plan to use within 4 days
Reheating
- Reheat on the stovetop for the smoothest result. If using the microwave, heat in 20-second intervals and stir thoroughly between each one — this helps prevent the uneven heating that can cause graininess.
Frequently Asked Questions
Since this sauce takes about an hour to heat on high in the slow cooker, we do not recommend cooking in the slow cooker overnight. We also like to occasionally stir to make sure the cheese melts evenly so that it does not burn. You may also want to check out this Crock Pot Nacho Cheese Sauce Recipe.
If your cheese sauce is to thin, you may need to add in cornstarch to help thicken it. Start with a tablespoon at a time to get the consistency that you prefer.
Yes — make up to 3 days ahead and store in the refrigerator. Reheat in a saucepan over medium-low heat with a splash of milk whisking constantly until smooth.
Pre-shredded cheese was used or the cheese was added over too high heat — always shred fresh from a block and remove the pan from heat before stirring in the cheese.
Transfer to a small slow cooker or fondue pot set to the warm setting — it stays at the perfect dipping consistency for hours without drying out.
Yes — pepper jack gives a spicier result, Monterey Jack gives a milder creamier result, and a combination of cheddar and Gruyere gives a more complex sophisticated flavor.
Add a splash of whole milk and whisk over medium-low heat until it loosens to your preferred consistency — the sauce thickens as it cools so a splash of milk always brings it back.
This usually means the sauce got too hot after the cheese was added, causing the butterfat to separate. Whisk in a tablespoon of milk over low heat to bring it back together, and next time pull the pan fully off the heat before stirring in the cheese.
More Easy Dip Recipes
This recipe has been a favorite at family gatherings and parties for years. It is smooth, creamy, and costs just $0.26 per serving. After 20 years of making recipes for my family, I know homemade dips are often worth the extra few minutes. Leave a star rating and comment to let me know what you dipped in it first.
Nacho Cheese Sauce
Ingredients
- 2 Tbsp Butter
- 2 Tbsp Flour
- 1 ¼ cup Whole Milk
- 8 oz. Cheddar Cheese shredded
- ½ tsp Salt
See how we calculate recipe costs.
Instructions
- In a small saucepan over medium heat, melt butter.
- Add flour and whisk continuously for about 1 minute until the mixture is smooth, combined, and lightly thickened.
- Slowly pour in whole milk, whisking constantly to prevent lumps.
- Increase the heat slightly and continue whisking as the mixture comes to a gentle simmer. Cook until the sauce thickens enough to coat the back of a spoon, about 3–5 minutes.
- Remove the saucepan from the heat.
- Gradually add shredded cheddar cheese, a handful at a time, whisking after each addition until the cheese is completely melted and smooth.
- Stir in salt.
- If the sauce is thicker than desired, whisk in a little additional milk, 1 tablespoon at a time, until it reaches your preferred consistency.
- Serve immediately while warm.
