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In a medium saucepan, melt the butter over medium-high heat and whisk in the flour. Cook, stirring constantly, for 2 to 3 minutes. Do not allow the flour to color. While whisking constantly, add the milk in a steady stream. Add the green chiles and bring the sauce to a boil. Cook, stirring frequently, for about 5 minutes, or until the sauce is thickened and bubbly. Add the Cheddar, salt, and cayenne pepper and stir until the cheese is melted and the sauce is smooth. Cover and remove from the heat.
Preheat the oven to 400 degrees F.
In a large, ovenproof shallow casserole or on a large baking sheet, spread half of the tortilla chips in an even layer. Top with half of the chicken, and half of the Monterey Jack cheese. Top with the remaining tortilla chips and chicken. Pour the hot cheese sauce over the chicken, then evenly spread the remaining grated Monterey Jack over the top. Bake until the cheese is melted and bubbly and the nachos are heated through, 8 to 10 minutes. Garnish with the sliced green onions, sour cream, pickled jalapenos and cilantro. Serve with the Pico de Gallo alongside.
Yield: 6 servings