In a medium saucepan over medium heat, combine the cottage cheese, diced tomatoes, diced green chilies, and shredded cheddar cheese. Stir well to combine.
Add the garlic powder, onion powder, ground cumin, cayenne pepper, and salt to the mixture. Continue to stir until the cheese is melted and the dip is heated through, about 5-7 minutes.
Once the mixture is creamy and hot, remove it from the heat. For a smoother texture, transfer the mixture to a blender or food processor and blend until desired consistency is reached.
Taste the dip and adjust seasonings if needed. If the dip is too thick, you can add a splash of milk to thin it out.
Transfer the queso dip to a serving bowl and sprinkle with chopped cilantro, if using. Serve warm with tortilla chips or fresh veggies.
For an added flavor kick, consider incorporating jalapeños or hot sauce into the dip.