Smoking Velveeta cheese is a common when making smoked queso recipes. It adds a deliciously rich and smoky flavor to the cheese. However, you should be aware that Velveeta is a processed cheese meant to melt smoothly, so it can become too runny when exposed to heat for too long. It's best to smoke Velveeta as part of a recipe that includes other ingredients, such as queso dip.
To avoid overheating or burning, keep the temperature low and monitor the cheese regularly. The objective is to warm it enough to absorb some of the smoke flavors without losing its desired consistency.