Start by grating the cheeses and measuring out all your ingredients.

In a medium saucepan over medium heat, add the softened cream cheese. Stir it occasionally until it starts to melt.

Pour in the milk and stir until the mixture is well combined and creamy.

Gradually add the shredded cheddar and Monterey Jack cheese. Stir continuously until the cheeses melt and the mixture is smooth.

Add the can of diced tomatoes with green chilies to the cheese mixture.

Sprinkle in the cumin, garlic powder, chili powder, salt, and pepper.

Reduce the heat to low and let the queso simmer for about 5 minutes.

Transfer the queso to a serving bowl and enjoy it warm with tortilla chips.