01 - Heat olive oil in a large skillet over medium heat. Add diced onion and jalapeño; sauté for 2–3 minutes until softened and fragrant.
02 - Add ground beef to the skillet, breaking it up with a wooden 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 spices are fragrant and well distributed.
04 - Add diced tomato and cook for 2–3 minutes, allowing juices to release and reduce slightly for concentrated flavor.
05 - Lower heat to medium-low. Add cubed processed cheese, shredded cheddar, and milk. Stir continuously until cheese is completely melted and mixture is smooth, about 5 minutes.
06 - If dip is too thin, dissolve cornstarch in 2 tbsp cold water, then stir into the dip. Cook for 1–2 minutes until thickened to desired consistency.
07 - Transfer queso dip to a serving bowl. Top with chopped cilantro if desired. Serve immediately with tortilla chips and lime wedges on the side.