Warm the pan. Heat a large skillet over medium-high.
Add avocado oil and swirl to coat.
Brown the beef. Add ground beef and break it up with a spatula. Cook until browned with some crisp edges, about 5–7 minutes. Spoon off excess fat if needed, leaving about a tablespoon for flavor.
Sauté the aromatics. Add onion, bell pepper, and jalapeño.
Cook 3–4 minutes until softened. Stir in garlic and cook 30 seconds until fragrant.
Season it. Sprinkle in chili powder, cumin, smoked paprika, salt, and black pepper. Stir so the spices coat the beef and veggies.
Add the tomatoes. Stir in the drained diced tomatoes with green chiles.
Let it bubble for 1–2 minutes to concentrate flavor.
Make it creamy. Reduce heat to medium-low. Add cream cheese and heavy cream. Stir gently until the cream cheese melts into a smooth sauce.
Melt the cheese. Sprinkle in shredded cheddar a handful at a time, stirring until melted and glossy.
If the sauce gets too thick, splash in a little more cream.
Taste and adjust. Add more salt, pepper, or chili powder if you want extra kick. Stir in chopped cilantro if using.
Finish and serve. Squeeze a little lime over the skillet for brightness. Serve hot with your favorite keto sides or scoops.