Queso Dip

I was so excited when I found this recipe on Pinterest as queso dip is one of my favorite things when I go out for Mexican food. However, this did not turn out very well. I don't know if I did something wrong, or didn't buy the right cheese or what. It never got to that smooth consistency and just didn't taste good. It pretty much looked like a garlic butter, which was very odd. Maybe one of you can figure it out?

Update 11/16/2013
I tried this again. And pretty much got the same result. See the picture below. It did not get smooth even after many many minutes of stirring. And it just looked like butter. I tasted it and it did taste okay, but it's not that appetizing to look at so I won't be making this again. So disappointed.

Queso Dip-adapted from The Royal Cook
Total Time: 10 Minutes
Serves 10

• 1 1/4 pound block white American cheese, cut into 1 inch cubes
• 1/4 cup diced green chiles
• 2 pickled jalapenos, chopped
• 1 ounce pickled jalapeno juice
• 2/3 cup whole milk
• 1/2 cup cold water
• pinch of cumin 

Put all ingredients in a microwave safe bowl, and cook in microwave on high for 5 minutes, stirring every 1 minute. Serve with chips.