Prepare the Ingredients: Shred the cheddar and Monterey Jack cheeses. Drain the green chilies. If using, cook the ground beef or chorizo.
Melt the Cheese: Heat the cream cheese in a saucepan over medium heat until it softens. Gradually add the shredded cheddar and Monterey Jack cheeses, stirring until melted. Slowly add the milk, a little at a time, and stir until smooth.
Add the Chilies and Spices: Stir in the green chilies, garlic powder, cumin, and paprika. Mix well and heat until everything is combined and hot.
Adjust the Consistency: If the queso is too thick, add more milk to thin it out. For extra creaminess, add a bit of sour cream or extra cream cheese.
Serve: Pour the queso into a bowl, garnish with cilantro, and serve with tortilla chips or your favorite Tex-Mex dishes.