Prepare the meat: In a large skillet over medium heat, cook the ground beef (or sausage), breaking it apart with a spatula as it browns. Continue cooking until fully browned and no pink remains. Carefully drain excess grease to avoid an oily dip.

Season the base: Return the cooked meat to the skillet and sprinkle in garlic powder, onion powder, black pepper, and optional chili powder or cayenne. Stir well so the seasonings are evenly distributed throughout the meat.

Add the tomatoes: Pour in the entire can of diced tomatoes with green chilies (including the liquid). Stir everything together and allow it to heat for 2–3 minutes so the flavors begin to blend.

Melt the cheese: Reduce the heat to low and add the cubed Velveeta cheese into the skillet. Stir continuously as the cheese begins to melt, ensuring it combines smoothly with the meat and tomato mixture.

Adjust consistency: If the dip becomes too thick, slowly add milk a little at a time while stirring until you reach your desired creamy texture. Keep the heat low to prevent the cheese from separating or burning.

Simmer and finish: Let the dip gently simmer for another 5–10 minutes, stirring occasionally until everything is fully melted, smooth, and well combined. Taste and adjust seasoning if needed.

Serve warm: Transfer the Rotel dip to a serving bowl or keep it warm in a slow cooker. Garnish with chopped cilantro or green onions if desired. Serve immediately with tortilla chips, crackers, or sliced bread for dipping.