Remove and discard the seeds and white veins from the chili peppers. Chop the peppers into 1-inch pieces.

In a skillet over medium-high heat, warm the oil. Add the peppers, onions, and garlic. Sauté until the onion has softened and the garlic is fragrant, approximately 4 minutes. Remove from the heat and set aside to cool.

Once cooled, place the chili mixture in a food processor or blender. Add the evaporated milk and blend well to combine.

Add the cheese and crackers and blend again until smooth. The sauce should be fairly thick. Add another saltine or two if too thin. If too thick, add a little milk.

Season the sauce with salt and pepper to taste.

Serve at room temperature with your favorite dishes or refrigerate until ready to use.