Okay here is how we make the Chico's Taco sauce:

Use fresh tomatoes and fresh jalapenos and boil them in a pot of water together with salt.

Let them boil a good while till the skin is falling off of the tomatoes. Then blend the tomatoes until a puree.

And add water from the pot (that the tomatoes boiled in until desired thickness)

Then set aside and then blend the boiled jalapenos until puree. Combine as much as you would like together (depending on how hot you like it).

And thats it. Really simple.

As for the cheese, I don't know what type of cheese they use.