Preheat oven to 400 degrees.
Drain green chiles and cut each whole chile into 4 strips. Set aside.
Put a small pat of butter in each section of the muffin tin and place it in the oven.
Beat the eggs with a mixer on a high speed until light.
Add in the flour and salt and beat again.
Add the milk and beat for at least 2 minutes.
Take the muffin tin out of the oven and swirl the melted butter around to coat each section. Fill the tin about half full with the batter. (There might be leftover batter. Do not overfill or they will overflow.)
Put two pepper strips into each section and a cube or two of cheese into the center.
Bake at 400 degrees for 25-28 minutes.
To prepare Ranchero Sauce: In a blender or food processor, puree the the tomatoes, onion, garlic, and jalapeno. Add the oil to a sauce pan on medium heat.
Pour in the tomato puree and turn down to simmer covered over low to medium heat 5-10 minutes.
Season with salt and pepper to taste. Stir in the cilantro right before serving if desired.