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.
*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.
Recipe courtesy of MomEndeavors.com. Please visit Mom Endeavors for recipe updates and additional tips!