Prep the dairy: Set the cream cheese out to soften.
This helps it melt smoothly into the soup without clumps.
Brown the beef: Heat a large pot or Dutch oven over medium-high. Add the ground beef and break it up with a spatula. Cook until browned with some crispy bits, about 6–8 minutes.
If there’s excess grease, spoon off a little, leaving 1–2 teaspoons for flavor.
Sauté the aromatics: If the pot looks dry, add the oil. Stir in onion and bell pepper. Cook 3–4 minutes until softened.
Add garlic and cook 30 seconds until fragrant.
Bloom the spices: Stir in chili powder, cumin, smoked paprika, oregano, coriander, salt, pepper, and cayenne if using. Cook 30–60 seconds. This wakes up the spices and deepens the flavor.
Add tomatoes and broth: Stir in the tomato paste to coat the meat and veggies.
Add the Rotel and beef broth. Bring to a gentle boil, then reduce to a simmer.
Simmer: Let the soup simmer uncovered for 12–15 minutes, stirring occasionally. The flavors will meld and the broth will reduce slightly.
Make it creamy: Lower the heat to medium-low.
Add cream cheese cubes and whisk or stir until fully melted and smooth. Pour in heavy cream and stir to combine.
Add cheese: Stir in shredded cheddar a handful at a time until melted and incorporated. Don’t let the soup boil once the dairy is added—keep it at a gentle simmer.
Finish and taste: Squeeze in the lime juice and adjust seasoning with more salt, pepper, or heat as needed.
Serve: Ladle into bowls and top with avocado, extra cheese, sour cream, cilantro, and jalapeño slices.
Enjoy hot.