In a medium saucepan, combine shredded cheese and milk over medium heat.
Stir continuously until cheese melts and mixture is smooth.
Add diced green chilies and tomatoes to the cheese mixture.
Sprinkle in garlic powder and onion powder for flavor.
Mix well to combine all ingredients evenly.
Season with salt and pepper to taste.
If the dip is too thick, add a little more milk to reach desired consistency.
Once heated through, remove from heat and stir in chopped cilantro.
Transfer the dip to a serving bowl.
Serve warm with tortilla chips or fresh veggies.