Prepare the Base. Start by browning the ground beef in a skillet over medium heat. Add the diced onion and minced garlic, cooking until fragrant and softened. Stir in chili powder and cumin to toast the spices.
Add Tomatoes and Cheese. Lower the heat and add the diced tomatoes with green chilies. Stir to combine. Cube the cream cheese and add it to the skillet, allowing it to melt into the mixture.
Incorporate the Cheddar. Gradually add shredded cheddar cheese, stirring continuously until it melts smoothly. Add a splash of milk to achieve your desired consistency.
Finish with Heat. Stir in hot sauce (optional) for an extra spicy punch. Taste and adjust seasonings as needed.
Serve Warm. Transfer the dip to a serving bowl or keep it warm in a slow cooker. Serve with tortilla chips, veggies, or crackers for dipping.