The main difference between queso Oaxaca and quesillo is that the former is pasteurized and not made in its town of origin, Oaxaca. This is due to stringent American laws that do not allow the sale of semi-fresh unpasteurized cheeses for sale. The latter is a Mexican-inspired cheese that is more like American-style string cheese. It melts beautifully and creates picturesque cheese pulls. This is the cheese you want when making chiles rellenos, queso fundido, or quesadillas.
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