Processed cheese in pesto

For texture, you’ll want to use a hard, dry and somewhat brittle cheese (such as Parmigiano, Grana Padano or Pecorino) which does not melt easily. The texture is right when you can break pieces off it with a Parmesan knife. If you can easily cut it into slices with a knife, it is probably too soft. The same probably goes for cheese which already comes in slices. Chances are the heat of the pasta will turn it into a viscuous mass almost instantly.

As for flavor, you’ll have to judge for yourself, as you’re about to enter the world of fusion cuisine.

Processed cheese isn't a good replacement for parmesan, it's generally too soft from added oils, and it doesn't have the right flavor. Instead, add more pine nuts, and salt to taste, leaving the cheese out entirely. If you can't find pine nuts then cashews or almonds can be used instead.

If you decide to try it use a bit less olive oil to make up for the oils in the cheese.