This creamy, spicy, and rich nacho cheese sauce is perfect for tacos, nachos, burritos, fries, and more! Made with real cheddar cheese and flavorful seasonings, this homemade Taco Bell-inspired nacho cheese sauce will take your Mexican dishes to the next level.
Ingredients (Serves 6-8)
- 1 cup whole milk
- 2 cups shredded cheddar cheese (freshly grated)
- 2 tablespoons butter
- 2 tablespoons all-purpose flour
- ½ teaspoon chili powder
- ½ teaspoon paprika
- ¼ teaspoon garlic powder
- Salt, to taste
Instructions
Make the Roux
- In a medium saucepan, melt the butter over medium heat.
- Whisk in the flour and continue whisking for about 1 minute to remove the raw flour taste. This creates a smooth roux to thicken the sauce.
Add the Milk
- Slowly pour in the milk, whisking constantly to prevent lumps.
- Continue stirring for 2-3 minutes until the mixture thickens slightly.
Melt the Cheese
- Reduce heat to low and add the shredded cheddar cheese gradually, stirring constantly.
- Keep stirring until the cheese is fully melted and the sauce is smooth and creamy.
Add Seasonings
- Stir in the chili powder, paprika, garlic powder, and salt. Mix well to incorporate all flavors.
Serve & Enjoy
- Remove from heat and serve warm over nachos, tacos, fries, or any dish needing a cheesy touch!
Cooking Time & Servings
- Prep Time: 5 minutes
- Cook Time: 10 minutes
- Total Time: 15 minutes
- Servings: 6-8
Enjoy your homemade, rich, and flavorful nacho cheese sauce!
30 Popular Questions & Answers 

Can I use pre-shredded cheese?
Freshly shredded cheese is best since pre-shredded cheese contains anti-caking agents that can make the sauce grainy.
Can I use a different type of cheese?
Yes! Try Monterey Jack, Pepper Jack, Velveeta, or a Mexican cheese blend for variation.
How do I make the sauce spicier?
Add cayenne pepper, hot sauce, or diced jalapeños for extra heat.
Can I use water instead of milk?
Milk makes it creamy, but you can substitute evaporated milk, heavy cream, or half-and-half for extra richness.
How do I prevent the cheese sauce from clumping?
Use low heat when adding the cheese and stir constantly.
Can I make this sauce ahead of time?
Yes! Store in an airtight container in the fridge for up to 3 days.
How do I reheat the sauce?
Reheat gently on the stove over low heat, adding a splash of milk to thin it out.
Can I make this without flour?
Yes! Substitute flour with cornstarch (1 tablespoon) for a gluten-free version.
Why is my cheese sauce too thick?
Add a little warm milk and stir to reach your desired consistency.
Why is my cheese sauce too thin?
Let it simmer longer to thicken, or whisk in 1 teaspoon of cornstarch mixed with water.

Can I freeze nacho cheese sauce?
No, dairy-based sauces don’t freeze well—they become grainy when reheated.

Can I add taco seasoning instead of individual spices?
Yes! Use 1 teaspoon of taco seasoning for an easy flavor boost.

How do I keep the cheese sauce smooth?
Whisk continuously and don’t overheat the cheese.

Can I use cheddar and Velveeta together?
Yes! Velveeta makes the sauce extra creamy.

Can I use dairy-free milk?
Yes, but use unsweetened almond or oat milk for best results.

Can I make this sauce in the microwave?
Yes! Heat butter and flour in 30-second intervals, then slowly add milk and cheese.

Can I use smoked paprika instead of regular?
Yes! It adds a deeper, smokier flavor.

How do I prevent my cheese sauce from getting grainy?
Melt cheese slowly on low heat and stir constantly.

Can I add Rotel tomatoes to this sauce?
Yes! Diced Rotel tomatoes add extra flavor and texture.

What’s the best way to serve this sauce?
Over nachos, tacos, burgers, fries, or as a dip.
30 Tips to Make Taco Nacho Cheese Sauce Even More Delightful 

Cheese Tips
- Use freshly shredded cheese for the smoothest texture.
- Mix different cheeses like Pepper Jack for extra flavor.
- Use Velveeta for a creamy texture like restaurant nachos.
- Add a little cream cheese for extra richness.
- Avoid pre-shredded cheese—it makes the sauce grainy.
Spice & Flavor Tips
- Use smoked paprika for depth of flavor.
- Add a splash of hot sauce for extra heat.
- Stir in chopped jalapeños for a spicy kick.
- Use taco seasoning instead of individual spices.
- Mix in chopped green chilies for a Tex-Mex twist.
Cooking Tips
- Whisk constantly to prevent lumps.
- Melt the cheese slowly over low heat.
- Simmer, don’t boil, to avoid a grainy texture.
- Use cornstarch instead of flour for a gluten-free version.
- If too thick, add warm milk slowly to adjust consistency.
Serving Tips
- Serve immediately for the best texture.
- Use as a dip for fries, nachos, or pretzels.
- Drizzle over tacos, burritos, or quesadillas.
- Mix into scrambled eggs or breakfast burritos.
- Pour over baked potatoes for a cheesy side.
Storage & Reheating Tips
- Refrigerate leftovers in an airtight container for up to 3 days.
- Reheat on the stove with a splash of milk to prevent thickening.
- Avoid microwaving—use stovetop for best results.
- If sauce separates, whisk vigorously over low heat.
- Don’t freeze—it changes the texture!
Creative Variations
- Make it smoky by adding chipotle powder.
- Try adding a little beer for a beer cheese nacho sauce.
- Add cooked chorizo for a Tex-Mex queso dip.
- Use heavy cream instead of milk for a richer sauce.
- Turn it into a queso dip by adding diced tomatoes & green chilies.
Now go enjoy the best homemade Taco Nacho Cheese Sauce!