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Add the canned chili to a saucepan over medium heat and warm for 2–3 minutes.
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Add cubed Velveeta. Stir consistently until melted and smooth, 6–8 minutes.
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Lower heat to low. Add shredded cheddar in small handfuls, stirring until melted.
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Serve immediately, or transfer to a slow cooker set to warm for serving.
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