Add the cottage cheese, 1/2 cup of the shredded cheddar cheese, water, taco seasoning, chili powder, garlic powder, and ground cumin to a blender. Blend on high speed for 1-2 minutes until completely smooth and creamy. This initial blending incorporates the spices evenly and breaks down the cottage cheese curds for a silky texture—I find blending half the cheese first creates a better foundation for adding the remaining cheese.

Add the remaining 1/2 cup of shredded cheddar to the blender with the mixture from Step 1. Blend for another 30-45 seconds until the cheese is fully incorporated and the dip reaches a smooth, pourable consistency. The texture should be thick but creamy—add a splash more water if needed to reach your desired consistency.

If you prefer warm dip, transfer the blended mixture from Step 2 to a microwave-safe bowl and heat in 20-second bursts for 40-60 seconds total, stirring between bursts, until warmed through. For a cold dip, skip the heating step. I like to serve this warm because the cheese becomes extra creamy and rich, but it's equally delicious at room temperature or chilled if you make it ahead.

Give the dip a final stir to ensure it's well-combined and smooth. Transfer to a serving bowl and serve immediately with your favorite tortilla chips, crackers, or vegetables.