Keto Mexican Casserole

Preheat oven to 375 degrees F (190 degrees C). Lightly grease a 9x13 inch baking dish.

Heat olive oil in a large skillet over medium-high heat. Add ground beef and cook, breaking it apart with a spoon, until browned. Drain any excess fat.

Add chopped onion to the skillet and cook until softened, about 5 minutes. Stir in minced garlic and cook for another minute until fragrant.

Stir in diced tomatoes with green chilies (undrained), water, chili powder, cumin, smoked paprika, and cayenne pepper (if using). Bring to a simmer and cook for 5-7 minutes, allowing the flavors to meld and the sauce to thicken slightly. Season with salt and pepper to taste.

In a separate bowl, combine softened cream cheese, sour cream, and fresh cilantro until smooth.

Spread half of the seasoned ground beef mixture evenly in the bottom of the prepared baking dish.

Dollop the cream cheese mixture over the beef layer and gently spread it out.

Sprinkle 1 cup of cheddar cheese and all of the Monterey Jack cheese over the cream cheese layer.

Top with the remaining ground beef mixture.

Sprinkle the remaining 2 cups of cheddar cheese over the top.

Bake for 20-25 minutes, or until the cheese is melted and bubbly and the casserole is heated through.

Let stand for 5 minutes before serving. Garnish with diced avocado, sugar-free salsa, and extra sour cream or Greek yogurt, if desired.