Gather all the ingredients in one place. Make sure your cream cheese is softened for easy mixing. Preheat your oven to 350°F (175°C) and get a baking dish ready for the dip.

In a mixing bowl, combine the softened cream cheese, shredded cheddar cheese, and sour cream. Use a hand mixer or a spatula to blend the ingredients until the mixture is smooth and creamy.

Stir in the diced tomatoes with green chilies, garlic powder, onion powder, salt, and pepper. Mix everything until the ingredients are evenly distributed.

Pour the cheesy mixture into your prepared baking dish. Spread it evenly.

Place the baking dish in the preheated oven. Bake for about 20 minutes or until the dip is bubbly and golden.

After 20 minutes, carefully remove the dip from the oven. The Cheese Dip should be warm, melted, and invitingly bubbly. If it needs more time, continue baking for a few additional minutes.

Let the dip cool for a few minutes before serving.

Scoop out portions of the Cheese Dip using tortilla chips or serve with fresh veggies.

Optional: Garnish with fresh herbs, diced green onions, or an extra sprinkle of cheddar on top before serving.