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In a saucepan, combine vegan butter and chopped yellow onion until translucent and softened. Add gluten-free flour on low heat, stirring for 2 minutes, until fully combined.
Add cashewmilk and bring to a simmer.
Stir in shredded dairy-free cheese until fully melted. Then add cayenne pepper, smoked paprika and salt.
Garnish with sliced green onion, chopped tomato, fresh cilantro and jalapeño. Serve warm with tortilla chips.