I've made this several times, the first couple to the letter, to good reviews, then I started experimenting.
Melting the Velveeta first in a microwave ensured that the cheezy goodness was thoroughly distributed.
Used very little butter, but added sour cream to added a great smoothness
Added diced ham or Bac'n Pieces (soy based facon) to add some color. (Used the facon since the last pot-luck had several vegetarians, not vegans, attending, rave reviews, btw.)
Everything works great in pyrex bowls (2.5qt for these measurements)
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I've made this several times, the first couple to the letter, to good reviews, then I started...