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Ingredients
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Chili
Cheese Sauce
To Serve / Optional Garnishes
Method
Chili
Cook aromatics and meat
Heat a medium pot or deep skillet over medium heat. Add vegetable oil. When hot, add the diced onion and cook 4–5 minutes until softened and translucent. Add minced garlic and cook 30 seconds until fragrant. Increase heat to medium-high, add ground beef (or turkey) and break it up with a spoon. Cook 6–8 minutes until browned and no longer pink.
Build the chili
Stir in the tomato paste and cook 1–2 minutes to deepen flavor. Add chili powder, cumin, smoked paprika, brown sugar, salt, and pepper; stir to coat the meat and toast the spices 30–45 seconds. Pour in the diced tomatoes and beef broth, scrape up any browned bits from the bottom, and bring to a gentle simmer.
Simmer with beans
Reduce heat to low and add drained kidney beans. Simmer uncovered for 15–20 minutes, stirring occasionally, until the mixture thickens to a chunky chili consistency. Taste and adjust seasoning with more salt, pepper, or chili powder if desired. Keep warm while you make the cheese sauce.
Cheese Sauce
Make a roux
In a separate small saucepan, melt unsalted butter over medium heat. Whisk in the all-purpose flour and cook, whisking constantly, 1–1.5 minutes to remove the raw flour taste—do not let it brown significantly.
Add milk and thicken
Slowly whisk in the milk, a little at a time if needed, until smooth. Continue to cook and whisk until the sauce thickens and just begins to simmer, about 3–4 minutes.
Finish the cheese sauce
Lower heat to low. Stir in the cream cheese (if using) until melted and incorporated. Remove from heat and whisk in grated sharp cheddar a handful at a time until fully melted and smooth. Stir in mustard, salt, and pepper. Keep the sauce warm — if it cools and thickens too much, gently reheat over low and whisk in a splash of milk to loosen.
Assembly & Serving
To serve, spoon a generous portion of chili into bowls or onto a plate. Ladle warm cheddar cheese sauce over the chili (use all or part of the sauce depending on desired cheesiness).
Garnish with sliced green onions, jalapeño slices, and a dollop of sour cream if desired. Serve with tortilla chips or toasted bread for dipping.
Leftovers: Refrigerate chili and cheese sauce separately in airtight containers for up to 3–4 days. Reheat gently on the stove, adding a splash of water or milk to loosen the sauce as needed.