Cook sausage in a large skillet until meat is browned, stirring to crumble.
Drain well, set aside.
Combine cheese and undiluted soup in a heavy Dutch oven, cook mixture over medium heat, stirring until cheese melts.
Add crumbled sausage, picante sauce, and milk, mix well.
To serve, transfer mixture to a chafing dish.
Serve dip warm with tortilla chips.