Velveeta and Cheddar Spicy Pepper Cheese

3 oz VELVEETA, cut up
2 pkg (8 oz each) KRAFT Finely Shredded
Cheddar Cheese
1 jar (4 oz) diced pimentos, undrained
3 oz Cream Cheese, softened
1/4 cup milk
1 clove garlic, finely minced
1 tsp. minced jalapeno pepper

MICROWAVE VELVEETA in 2-quart microwavable
bowl on HIGH 45 seconds or until melted,
stirring after 30 seconds.

ADD all remaining ingredients. Beat with
electric mixer until well blended. Season
to taste with salt and pepper. Serve with
Crackers, if desired.