Place shredded cheese and cornstarch in a large bowl, and toss to combine.
Transfer coated Cheddar to a medium saucepan, and add 1 cup evaporated milk.
Cook cheese and milk over low heat, stirring constantly until melted, bubbly, and thickened, about 5 minutes.
Stir in chopped candied jalapenos, adding more if desired.
Mixture may look thin and grainy at first but will thicken and come together after heating. If desired, thin the cheese sauce with additional evaporated milk.