In a medium saucepan, melt the butter over medium heat and add chopped jalapeño. Sauté for a minute.

Meanwhile, in a small cup mix cornstarch and 1 tablespoon of milk until smooth.

Add the remaining milk, cornstarch mixture and sour cream into the sautéed jalapeño. Mix until combined.

Reduce the heat to medium low and add the cheddar cheese. Melt the cheese slowly, stirring constantly.

Stir in hot sauce.

Serve immediately with your favorite tortilla chips.