Sautee onion in butter, when almost clear. Add in chilies (juice included). Let the two ingredients heat together for about 1-2 minutes.
Then on medium/low heat, add cream of mushroom soup and the picante sauce. Stir well and begin adding in the Kraft American cheese. The smaller it is cubed, the quicker it will melt. Be sure to add the cheese last so that it is less likely to burn.
Last, add a few pinches of garlic powder. If too thick, add a little milk. Serve with rolled flour tortillas or chips. Enjoy!