This is my Nana's recipe, taught to me when I was little. She used Rotel tomatoes, but I can't take the spicyness. So, I updated her recipe, and later learned that I could "steam" chicken breast strips, (at the end of Step 1) and make a complete one-skillet meal for the family.
I actually make this when we're camping, and everyone around wants a plate of it. It has become a favorite comfort food.
In a large (12" or larger) skillet heat the olive oil over medium heat and add onions, then the cabbage. Lightly salt and then cover the skillet.
Allow the cabbage to "sweat and wilt" - the onions will be clear, and the cabbage will be translucent when done. You may want to stir gently with a wooden spatula to keep either cabbage or onions from sticking.
Add Pace Picante sauce - your choice of "heat" - mild, medium or hot. When thoroughly heated, turn off heat, sprinkle cheese over top of the mixture and cover again until cheese is melted. Serve.