In a large glass bowl, add grated onion, green chilies, and butter. Microwave on full power for 3 minutes. Stir.
Add Velveeta and evaporated milk. Return to microwave for 10 minutes at power level 8. Stir twice while cooking.
Cover the top of the bowl with oregano and cayenne pepper. Stir as it cools. More or less spice to taste.
Refrigerate? I do, but apparently not needed...?
Find any recipe, add your own, make grocery lists easily from recipes. Enter any 3 ingredients and BigOven will tell you what you can make. It's free! (4.5/5 stars)