Processed cheese is a type of cheese obtained from the mixing and heating of several natural cheeses, with suitable emulsifying agents, into a homogeneous plastic mass. It contains fruits, vegetables and spices. Processed cheese may be defined as a modified form of natural cheese prepared with the aid of heat. Processed cheese isn't technically a cheese but a byproduct of the cheese making process.
Good processed cheese has a smooth and compact body, devoid of fermentative gas holes and has a uniform color. This type of cheese could be sliced without crumbling or sticking and it melts uniformly and smoothly. Today there is an enormous range of processed cheese on the market, flavored by a staggering variety of ingredients which range from salmon to pineapple.
Preparation of Processes Cheese:

Advantage of processed Cheese:
Processed cheese keeps better than natural cheese, and it melts more evenly when used in cooking.Disadvantage of processed Cheese:
Shop for processed cheese: Processed cheese is sometimes sold in blocks, or spray cans, but more often sold packed in individual slices, sometimes with plastic wrappers or wax paper separating them. Due to the processing and additives, some softer varieties cannot legally be labeled as "cheese" in many countries, including the United States and Britain, and so are sold as "cheese food", "cheese spread", or "cheese product."
Velvetta: Velveeta is the brand name of a processed cheese product which was first made in 1918 by Swiss immigrant Emil Frey. Velveeta features a soft, creamy texture and a distinctive taste that advertisers compare to cheddar cheese, and it is noted for its easy melting.
(Sources: absoluteastronomy.com, ezinearticles.com/?Processed-Cheese&id=852719, web.info-galaxy.com)
(Image sources: sybarite.us/puertorico/2007/07/24/im-terrorized-by-cheese/, pollsb.com/polls/p2084016-velveeta_processed_cheese_yay_nay, atlanticcheeseco.com/services.html, goldpeg.com/applications/processed-cheese.htm)
