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HEAT large nonstick skillet over medium-high heat; add chorizo. Cook 5 minutes or until finely crumbled and browned, stirring occasionally. Drain; return to skillet.
ADD Velveeta and undrained tomatoes to skillet; stir to combine. Cook over medium heat 5 to 7 minutes or until Velveeta melts, stirring occasionally. Stir in green onion.
SERVE with chips, if desired.