Prepare Ingredients: Cut Velveeta cheese into cubes.
Combine Ingredients: Mix onions, chilies, and salsa in a saucepan.
Add Cheese: Place Velveeta cubes in the pan.
Melt Cheese: Pour hot water for a smooth texture, and stir.
Season: Add salt, pepper, onion powder, and garlic powder.
Cook Thoroughly: Stir constantly, and melt cheese evenly.
Adjust Thickness: Cook on low until desired consistency.
Cool and Serve: Remove from heat, let cool, then enjoy!