Love this and make it often! It's the closest I've found to what we get at some Mexican restaurants. I don't use a double boiler -- just melt the cheese in a sauce pan VERY slowly on low, and stir occasionally. I add a small amount of cream cheese along with the pepperjack, and since we love the taste of cumin, I add that at the end. Also, I use 2 percent milk instead of half and half (less amount). I have never had trouble mixing the cheese and milk (as others have stated). The only problem I ever had was when I made it a day ahead, refrigerated it, then micro-waved it -- the milk separated from the cheese and was a big lump.
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Love this and make it often! It's the closest I've found to what we get at some Mexican...