Heat a large skillet over medium-high heat and add the ground beef, breaking it into small crumbles as it cooks. Cook for 5-7 minutes until the beef is no longer pink and has started to brown slightly. Add the taco seasoning and stir well to coat all the meat evenly, cooking for another 1-2 minutes until fragrant. This browning step develops deeper flavor through caramelization, which is essential for a rich dip base.
While the beef cooks, cut the processed cheese into 1-inch cubes and have the shredded cheddar ready nearby. Drain the canned diced tomatoes with green chiles in a fine-mesh strainer, pressing gently to remove excess liquid—this prevents the dip from becoming too watery and keeps the flavors concentrated.
Add the drained tomatoes with green chiles to the cooked beef from Step 1 and stir to combine. Then add the cubed processed cheese and shredded cheddar cheese, stirring constantly. The heat from the beef will begin melting the cheeses, but you'll need to continue stirring frequently to ensure even melting and prevent scorching on the bottom of the skillet. I like to reduce the heat to medium at this point to give myself more control over the melting process.
Pour in the heavy cream and continue stirring until all the cheese is fully melted and the dip reaches a smooth, creamy consistency. Add the garlic powder and stir well to distribute it evenly throughout. Taste and adjust seasoning as needed—I often add a tiny pinch of extra salt since the processed cheese can sometimes mask flavors. Keep the dip on low heat to maintain its warm, pourable texture.
Transfer the queso dip to a serving bowl or slow cooker set on the lowest setting if serving at a gathering. Sprinkle the fresh cilantro over the top as a garnish just before serving. Serve with tortilla chips, crackers, or vegetables, stirring occasionally if keeping warm in a slow cooker to maintain a creamy consistency.