Homemade cheddar cheese soup is easy and delicious. I use 8 oz. regular, not sharp cheddar, shredded, a few slices of American cheese (helps make it smooth and silky), a teaspoon of grated parmesan or romano, 2 12 oz cans evaporated milk, 2 tablespoons each, butter and flour, and a little minced green pepper and minced onion, black pepper, and the tiniest bit of nutmeg. Most people would probably like it with sharp cheddar. I cook the green pepper and onion til it’s soft, not browned, add some flour to make a roux, and cook for 2 or 3 minutes,add the black pepper and nutmeg, whisk in the milk, cook til comes to gentle boil, taste to make sure the raw flour taste is gone, turn off the heat, and stir in the grated and sliced cheeses. You can cheat and add a drop of yellow food color if you must have yellow cheese soup. Taste for salt, adjust accordingly.
I also like Gruyere in my sauce, a little or a lot. I wanted the soup for something fast since they screwed up the Velveeta and I won't buy it any more.