Pour the water into the blender then add the soy milk powder, tapioca starch, salt, nutritional yeast flakes, cayenne, and lactic acid into the blender.
Important: If you pour the ingredients into the blender first it can sometimes clump to the bottom.
Blend on medium speed for 1 minute or until combined. Once blended add in the coconut oil.
Blend the contents, scraping the sides as needed. Pour the mixture into heavy bottom pan.
Place the pan over medium heat.
Using a silicone whisk or spatula, stir the mixture constantly as you cook on medium heat. The cheese will thicken within minutes.
Pour the cheese mixture over a plate of nachos or mix in your favorite salsa for a queso dip.
Serve immediately or refrigerate for up to 7 days.
The nacho cheese can be reheated after refrigeration.