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Toss the freshly shredded cheese with the cornstarch until evenly coated.
Warm the evaporated milk in a saucepan over medium-low heat. Do not boil.
Slowly whisk in the cheese a little at a time until smooth and melted.
Stir in the garlic powder, onion powder, smoked paprika, and jalapeño juice.
Add chopped pickled jalapeños if desired.
If the sauce thickens when reheating, just add a splash of milk to thin it back out.