Cut the Velveeta cheese block into small, evenly sized cubes. This helps it melt smoothly and evenly. In a large skillet or saucepan, add the cubed Velveeta along with the entire can of Rotel tomatoes (including the juices).
Place the skillet over medium-low heat and let the cheese slowly melt. Stir frequently to prevent sticking and ensure the cheese and Rotel combine into a smooth, creamy mixture. This process takes about 5 minutes—be patient and keep stirring so the cheese doesn’t scorch.
Once the cheese is fully melted and smooth, stir in the browned ground beef and chili powder. Mix everything together thoroughly so the beef is evenly distributed throughout the dip.
Continue to cook over medium-low heat for another 3-5 minutes, stirring occasionally. This allows the flavors to blend and ensures the dip is fully heated through. If the dip starts to thicken too much, you can lower the heat or add a splash of milk to loosen it up.
Once the dip is hot and creamy, transfer it to a serving bowl or keep it warm in a slow cooker on low. Add your favorite toppings like chopped lettuce, diced tomatoes, avocado slices, fresh cilantro, or sliced jalapenos for extra flavor and texture.
Serve with tortilla chips, crackers, or fresh veggies for dipping. Dig in while it’s warm and cheesy! If you have leftovers, store them in an airtight container in the refrigerator for up to 2 days. Reheat gently on the stovetop or in the microwave, stirring until smooth again.