Start by bringing a pot of water to a boil. Add the cubed potato and chopped carrot. Boil until they are tender, which usually takes about 10-15 minutes. Drain and set aside.
If you haven't already soaked your cashews, do this step now. Place them in a bowl and cover with water. Let them soak for at least 2 hours. If you're short on time, you can boil them for 10 minutes instead.
In a high-speed blender, combine the boiled potato and carrot, soaked cashews, water, plant-based milk, onion powder, garlic powder, paprika, lemon juice, nutritional yeast, vegan butter, and salt. Blend on high until the mixture is completely smooth and creamy. This may take a minute or two, so be patient!
Once blended, taste your Vegan Cheese Sauce. You might want to add more salt, lemon juice, or spices to suit your personal preference. Blend again if you add anything.
Transfer the sauce to a saucepan over low heat to warm it up before serving. This sauce is best enjoyed fresh but can be used in various dishes like nachos, pasta, or as a veggie dip. Enjoy the creamy goodness!