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Preheat oven to 425 degrees. Heat cast iron skillet over medium heat. Add butter and let sizzle. Add onions and cook until starting to soften, about 5-6 minutes, stirring often. Stir in jalapenos and cook for 2 minutes longer.
Stir in chorizo, breaking it into small pieces with a wooden spoon as it cooks. May want to bring it to medium-high heat. Cook until chorizo is completely cooked through, about 6-7 minutes. Drain the grease off of the chorizo by placing it on a paper-towel-lined plate.
After the grease has been drained, return chorizo to skillet (reserving a small amount of chorizo to garnish the top after cooking) and begin to add the cheese. Let the cheese melt for 1-2 minutes.
Fill a roasting pan or baking dish halfway up with hot water. Place the skillet inside of the water bath and place in the oven. Bake until the cheese is melted and gooey, about 18-22 minutes. Serve immediately with tortillas or chips.
Garnish with fresh cilantro and remaining chorizo.
Nutrition information is automatically calculated, so should only be used as an approximation.
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