ADD OIL TO A PAN OVER MEDIUM HIGH HEAT.
ADD THE PEPPERS AND ONIONS AND SAUTE FOR 6 MINUTES.
SPRINKLE OVER THE FLOUR AND STIR FOR 1 MINUTE.
SLOWLY, ADD THE MILK ONE SPLASH AT A TIME UNTIL A PUDDING-LIKE CONSISTENCY. THEN, ADD THE REMAINING MILK AND STIR.
SIMMER THE MILK FOR ABOUT 5 MINUTES. REDUCE THE HEAT TO LOW AND ADD THE CHEESES. STIR UNTIL MELTED.
ADD THE REMAINING INGREDIENTS AND STIR TO COMBINE.