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Melt the butter in a skillet over medium heat.
Stir in the onion and jalapeno and cook for 3-5 minutes, or until vegetables have softened.
Add the garlic, cumin, chili powder, and onion powder and cook for 30 seconds more.
Add the evaporated milk and cream cheese to the pan and cook, stirring constantly, over medium heat until the cream cheese has melted, about 5 minutes.
Reduce heat to low and add the shredded cheese a handful at a time, whisking constantly, until all of the cheese has been added and the sauce is smooth and creamy.
Add additional milk as desired to reach the consistency you prefer. Season with hot sauce and salt to taste. We add a fair amount of salt here, but keep in mind that chips are usually salty as well.
Top with pico de gallo before serving.