In a medium-sized pot, combine the milk and Velveeta cheese over low heat.
Stir the mixture frequently to prevent it from sticking or burning.
Add the cream cheese to the pot and continue to stir until it fully melts and integrates into the mixture.
The key here is patience, so keep the heat low and the stirring constant.
Once the cheeses are melted, slowly mix in the green chilies, ensuring they’re evenly distributed throughout the mixture.
This helps to infuse the queso with that delicious spicy flavor.
Add the shredded pepper jack and cheddar cheeses while continuing to stir.
Watch as the texture becomes incredibly smooth and creamy, with no lumps of cheese remaining.
Gently fold in the diced tomatoes, then remove the pot from the heat.
Your queso is now ready to serve!