yes, realize that...just think the only thing velveeta should be used on is SPAM!! <img src="http://www.traveltalkonline.com/forums/images/graemlins/Laugh.gif" alt="" />
found this for you:

Kraft Foods sure won't tell you the exact process. Proprietary, they say. Maybe they know the recipe for Velveeta is just too scary to release to the general public. Of course, there is plenty of speculation.

Here's the official story: Pasteurized process cheese contains one or more cheeses, such as cheddar, with added cream or anhydrous milkfat. The mixture is heated with an emulsifier-such as sodium or potassium phosphate, and other ingredients, like color and flavoring. It is then poured into molds to congeal (that's a creepy word, isn't it).

The Recipe for Velveeta Fudge

Please resist the urge to say "you'll never guess what's in it!" Believe me, people don't want to know.

NOTE: When I originally posted this, the recipe called for 1/2 cup dry milk. That was the one thing that tasted bad in the finished fudge. I have seen the recipe on the web alot without the milk, so here is the revised recipe, sans milk.

INGREDIENTS:
1 cup (2 sticks) butter, softened
8 ounces pasteurized process cheese, Velveeta, cubed
1 1/2 pounds confectioners' sugar, about 5 cups unsifted
1/2 cup unsweetened cocoa
2 teaspoons vanilla extract
2 cups coarsely chopped pecans or walnuts

PREPARATION:
In a large saucepan over medium heat butter and cheese cubes together, stirring frequently; remove from heat. Sift together confectioners' sugar and cocoa; add to cheese, mixing well. Stir in vanilla and nuts. Turn into a 9x9x2-inch pan; chill until firm and cut into squares.
Makes about 3 pounds.

Good luck.