In a small bowl, mix together corn starch and shredded cheddar cheese.
Dump contents into a sauce pan and stir in evaporated milk over medium low heat.
Stir/whisk often (to avoid burning) until the cheese is melted and the consistency is smooth. Stir in hot sauce.
Serve while hot.
Notes
*Grating your own cheese is highly recommended for an optimal smooth consistency. *2 Tbsp of the habanero sauce does make for a very spicy cheese. If you don't like sauce as spicy, start with less and add in small quantities until the desired spiciness is reached.