Pour the can of evaporated milk and add the butter to a small saucepan. Heat the mixture over medium-high heat, stirring occasionally, until it comes to a gentle simmer. Be careful not to let the milk boil over.
While the milk and butter are heating, place the shredded cheddar cheese in a bowl. Sprinkle the cornstarch over the cheese and toss until all the cheese is evenly coated. This helps the cheese melt smoothly and thickens the sauce.
Once the milk and butter mixture is simmering, add the cornstarch-coated cheddar cheese (from Step 2) to the saucepan. Stir constantly until the cheese melts and the sauce thickens, about 1 minute. I always make sure to stir vigorously at this stage to ensure a super smooth sauce.
Once the cheese has fully melted and the sauce is thickened, stir in the garlic powder, chopped dill pickles, and pickle liquid. Mix thoroughly, then remove the saucepan from the heat. Serve the cheese sauce warm with your favorite tortilla chips.