Place one cup corn and 1 ½ cup milk in a Dutch Oven.Bring mixture to a boil over medium heat.Combine chopped chile, onion, and tbs. water in a microwave-safe bowl.Cover and microwave on high four minutes.Meanwhile, place two cups corn and ½ cup milk in a blender; process until smooth.Add pureed mixture to corn mixture in pan.Stir in chile mixture and salt, and cook six minutes over medium heat.Ladle soup into bowls, and top each serving with two tbs. cheddar cheese.4 servings.