Finely chop the banana peppers and drain the canned tomatoes to remove excess moisture. Gather your cheese, flour, and milk.

In a medium saucepan, heat over medium heat, adding the flour. Stir continuously for about 2–3 minutes until it turns light golden.

Gradually whisk in the whole milk, stirring as it thickens for approximately 3–5 minutes until smooth and creamy.

Reduce heat to low, then add the shredded sharp cheddar and Monterey Jack cheeses. Stir until completely melted and velvety.

Fold in the chopped banana peppers and drained tomatoes. Stir well and heat through for another 2–3 minutes.

Pour the warm Banana Pepper Queso Dip into a serving dish and serve immediately with tortilla chips.