1 small onion
3 slices bacon
1 pound Velveeta, cubed
1 - 16 oz. can chili, without beans
1 - 10 oz. can tomatoes with chilies, chopped and un-drained

Sauté onion and bacon in a saucepan until onion is tender. Stir in cheese cubes, chili, and tomatoes; cook until bubbly, stirring well. Serve warm with chips.