Combine the cubed Velveeta cheese and milk in a medium saucepan over medium heat.
Stir until the cheese is melted and smooth.
Add the shredded cheddar cheese and continue stirring until fully melted.
Incorporate the diced tomatoes with green chilies into the cheese mixture.
Season with garlic powder and onion powder, stirring well to combine.
If desired, add diced jalapeño for extra heat and mix thoroughly.
Cook for an additional 5 minutes, stirring occasionally.
Remove from heat and let it cool slightly before serving.
Transfer the queso dip to a serving bowl and garnish with fresh cilantro.
Serve warm with tortilla chips for dipping.