First and foremost, you need to gather your ingredients and tools. You’ll need a medium saucepan, a whisk, and a container to store your finished cheese.  Having everything ready to go makes the process smooth, so no one’s running around searching for cheese shreds!

In your medium saucepan, melt the 4 tablespoons of salted butter over low heat. Make sure it doesn’t get too hot; we want it just melted, not bubbling away. This will serve as the foundation for your creamy mixture.

Once the butter is melted, add ½ teaspoon of sea salt, ¼ teaspoon of smoked paprika, and ½ teaspoon of garlic powder. Give it a good whisk to combine everything. The paprika adds a slight smokiness that enhances the flavor profile. Next, sprinkle in 2 tablespoons of cornstarch or arrowroot. Mix it in until there are no lumps visible.

Slowly pour in 1 cup of filtered water while continuously whisking to avoid any clumps. Then, add ½ cup of dry skim milk powder. This will contribute to that velvety texture we all love about Velveeta cheese. Keep whisking until the mixture is smooth.

Now, turn the heat up to medium. Keep stirring as it heats up, or you might find that it sticks to the bottom of the pan. As the mixture warms, it will start to thicken, so patient stirring is key here.

Once thickened, it's time for the star of the show! Gradually stir in your freshly shredded 16-ounce block of mild cheddar cheese. Keep mixing until every bit is melted and blended in. It should have a luscious, smooth consistency. If it feels too thick, a little extra water can help to loosen it up.

After all that, pour your homemade Velveeta cheese into a suitable container. Let it cool at room temperature for about 30 minutes, then transfer it to the fridge to set further. The texture will firm up as it chills, making it even more perfect for your cheesy needs.