01 - Heat olive oil in a large skillet over medium heat. Add diced onion and jalapeño; sauté for 2–3 minutes until softened.
02 - Add ground beef, breaking it up with a spoon. Cook until browned and no longer pink, about 5 minutes. Drain excess fat if necessary.
03 - Stir in garlic, chili powder, cumin, smoked paprika, salt, and black pepper; cook for 1 minute until fragrant.
04 - Add diced tomato and cook for 2–3 minutes, allowing juices to release and reduce slightly.
05 - Lower the heat to medium-low. Add cubed processed cheese, shredded cheddar, and milk. Stir continuously until the cheese is melted and the mixture is smooth, about 5 minutes.
06 - If the dip is too thin, dissolve cornstarch in 2 tbsp cold water, then stir into the dip and cook for 1–2 minutes until thickened.
07 - Transfer the queso dip to a serving bowl. Top with chopped cilantro, if desired. Serve immediately with tortilla chips and lime wedges on the side.