Ingredients

2 pounds ground beef (80/20 or 85/15), ground turkey, or ground chicken

1 large yellow onion, finely diced

2 bell peppers (any color), cored and diced

1 (10-ounce) can diced tomatoes with green chilies (Rotel), undrained

2 tablespoons olive oil or avocado oil

1 (1-ounce) packet low-carb taco seasoning

½ cup water or beef broth

8 ounces cream cheese, softened to room temperature

½ cup sour cream (full-fat)

¼ cup heavy cream (optional)

½ teaspoon garlic powder

¼ teaspoon onion powder

Salt and freshly ground black pepper to taste

2 cups shredded cheddar cheese, Monterey Jack, or a Mexican blend

Instructions

Step 1: Preheat your oven to 375°F (190°C) and lightly grease a 9×13-inch baking dish. Ensure cream cheese is softened, and dice the yellow onion and bell peppers. Open canned ingredients.

Step 2: Heat 2 tablespoons of olive oil in a large skillet or Dutch oven over medium-high heat. Add your ground meat, break it up, and cook, stirring occasionally, until completely browned (7-10 minutes). Drain off any excess fat.

Step 3: Return drained meat to the skillet. Add the finely diced yellow onion and bell peppers. Cook over medium heat for 5-7 minutes, stirring frequently, until vegetables soften. Sprinkle the low-carb taco seasoning over the mixture, stir well, and cook for an additional minute until fragrant.

Step 4: Pour in the undrained diced tomatoes with green chilies and ½ cup of water or beef broth. Stir everything together. Bring to a gentle simmer, then reduce heat to low, cover, and cook for 5-10 minutes to meld flavors. Taste and adjust salt and pepper if necessary. Remove skillet from heat.

Step 5: In a separate medium-sized bowl, combine the softened cream cheese, sour cream, optional heavy cream, garlic powder, and onion powder. Whisk or mix thoroughly until the mixture is completely smooth and free of lumps.

Step 6: Gently fold about two-thirds of the smooth creamy mixture into the skillet with the seasoned meat and vegetables. Stir until just combined. Transfer this meat and creamy mixture to the prepared baking dish and spread evenly.

Step 7: Carefully dollop the remaining one-third of the plain creamy mixture over the meat layer and gently spread it out into an even layer. Generously sprinkle the shredded cheese evenly over the top.

Step 8: Place the baking dish into your preheated oven. Bake for 25-30 minutes, or until the casserole is bubbling around the edges and the cheese on top is melted, golden brown, and slightly bubbly. If the cheese browns too quickly, you can loosely tent the dish with aluminum foil for the last 10 minutes.

Step 9: Once baked, remove the casserole from the oven and let it rest on a wire rack for 5-10 minutes before serving. Garnish generously with optional fresh toppings such as chopped cilantro, diced avocado or guacamole, extra sour cream, sliced jalapeños, hot sauce, or shredded lettuce. Serve warm.

Tips & Variations

Use ground turkey or chicken for a leaner option without sacrificing flavor.

Add a pinch of smoked paprika or chipotle powder to the taco seasoning for extra smokiness.

For a creamier texture, include the optional heavy cream in the creamy mixture.

Top with sliced olives or diced green onions for added color and flavor.

If you prefer spicier food, add diced jalapeños into the meat mixture while cooking.

FAQs

Can I make this casserole ahead of time?

Yes, you can assemble the casserole a day in advance and refrigerate it before baking. Just add a few extra minutes to the baking time if baking straight from the fridge.

Is this casserole suitable for freezing?

It can be frozen, but texture may change slightly after thawing, especially the creamy layers. To freeze, cool completely, cover tightly, and freeze for up to 2 months. Thaw overnight in the refrigerator before reheating.