I use this as the cheese part of my potato cheese soup. I use 6 medium baking potatoes cut into about 1" cubes, boil them with just enough water to cover. When the potatoes are fork tender I add this cheese sauce and it comes out great.
1/2 c. butter
3 c. chicken broth
2 c. shredded cheddar cheese (sharp cheddar gives better flavor)
salt and pepper to taste
1/2 c. flour
1 c. milk
1/4 tsp. hot pepper sauce
In a large saucepan melt butter, stir in the flour. Add the milk and chicken broth. Stir until thickened. Add the cheese, the hot pepper sauce and salt and pepper to taste; stir until cheese is melted.