In a medium saucepan, combine the cream cheese and milk over medium heat.
Stir until the cream cheese is melted and smooth.
Add the shredded cheddar cheese gradually, stirring continuously.
Once the cheese is melted, add the can of diced tomatoes with green chilies.
Stir in the garlic powder, onion powder, cumin, salt, and pepper.
Continue cooking for about 5-7 minutes, stirring frequently.
Once the mixture is bubbling and well combined, remove from heat.
Transfer the queso to a serving bowl.
Garnish with chopped green onions.
Serve warm with tortilla chips.