Preheat and prep: Heat your oven to 375°F (190°C). Grease a 9x13-inch baking dish.
Sauté the veggies: Warm the olive oil in a large skillet over medium heat.
Add the diced onion and bell pepper. Cook for 3–4 minutes until they soften.
Brown the beef: Add the ground beef to the skillet. Break it up with a spatula and cook until no longer pink, about 6–8 minutes.
Drain excess fat if needed.
Add seasoning: Stir in the garlic and taco seasoning. Cook for 1 minute until fragrant. Mix in the tomato sauce and drained tomatoes with green chiles.
Simmer for 2–3 minutes. Taste and adjust salt and pepper.
Make the creamy layer: In a bowl, beat together cream cheese, sour cream, and 1/2 cup shredded cheese until smooth. If the cream cheese is too firm, microwave it for 15–20 seconds first.
Assemble the casserole: Spread the beef mixture evenly in the baking dish.
Dollop the creamy mixture on top and use a spatula to gently spread it. Sprinkle the remaining cheese over everything.
Bake: Bake uncovered for 18–22 minutes, or until the edges are bubbly and the cheese is melted and lightly golden.
Rest and top: Let the casserole rest for 5–10 minutes to set. Add your favorite toppings, such as sliced jalapeños, avocado, cilantro, or shredded lettuce.
Serve: Spoon into bowls and enjoy as is, or pair with cauliflower rice or a simple side salad.