I always make this with Hormel chili (there is no substitute). I recommend cubing the cheese so it melts quicker. I have never made this on the stove, always in the micro (just stir it every minute or so until the cheese melts and then transfer to a slow cooker). Absolutely addictive, EVERYBODY LOVES IT!!!! ***Added later***You don't need to add the chili powder either, it adds nothing to the recipe. I get the feeling that the submitter added it just so it wouldn't sound like they were copying the recipe word for word from the back of the velveeta box :).
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I always make this with Hormel chili (there is no substitute). I recommend cubing the cheese...