Hand shred cheese. Trust me on this one. Pre-shredded cheese contains additives to prevent clumping. When you combine that with the corn starch in this recipe, it makes the cheese sauce grainy instead of smooth. Plus, it is less expensive to shred your own.
In a medium sized bowl, toss cheese with corn starch. Toss until well coated. Transfer cheese mixture to medium sauce pan. Add 1 cup of the evaporated milk and the hot sauce. Cook over low heat, stirring constantly.
Continue to cook and stir until cheese is melted. Add the remaining evaporated milk slowly, stirring until well blended and heated through.
Remove from heat and serve with your favorite cheese-worthy food!