Chili con Queso

1/2 cup chopped onion
1 1/2 teaspoon onion flakes
2 tablespoons water
14 1/2 ounces can stewed tomatoes, undrained
4 oz.canned chopped green chiles
1 1/2 teaspoon chili powder
1/4 teaspoon salt
1/2 teaspoon (more if desired) hot pepper sauce
1/2 cup shredded Monterey Jack cheese
8 ounces cream cheese

Combine onion, garlic flakes, and water in medium saucepan; cook over medium heat until onion is tender and water has evaporated. Stir in tomatoes, chiles, chili powder, salt, and hot sauce. Cook until hot, stirring occasionally. Add cheeses and heat until melted, stirring constantly. Serve hot.