Warm a large skillet over medium heat. Add a splash of oil if your beef is very lean. Crumble in the ground beef and cook, stirring, until browned and no pink remains, about 6–8 minutes.
Drain excess grease if needed.
Add the onion and cook until softened and translucent, about 3–4 minutes. Stir in the garlic and cook for 30 seconds until fragrant.
Sprinkle in chili powder, cumin, smoked paprika, oregano, salt, black pepper, and red pepper flakes if using. Stir to coat the beef evenly.
Add the green chiles and tomato sauce.
Simmer for 2–3 minutes to let the flavors meld. The mixture should be saucy but not watery.
Reduce the heat to low. Add the cream cheese cubes and sour cream.
Stir slowly until the cream cheese melts and the mixture turns smooth and creamy.
Stir in 1 cup of shredded cheese until just melted. Taste and adjust salt, pepper, or heat as desired.
Sprinkle the remaining 1/2 cup cheese over the top. Cover the skillet with a lid and let it sit on low heat for 2–3 minutes until the top is melty and gooey.
Finish with a squeeze of lime juice and chopped cilantro.
Serve hot with your favorite toppings and low-carb sides like cauliflower rice or zucchini ribbons.