Dice the onion and jalapeño finely, cube the cream cheese and let it come to room temperature, and grate both the sharp cheddar and Monterey Jack cheeses (I find freshly grated cheese melts much more smoothly than pre-shredded varieties). Set your Instant Pot to Sauté mode and melt the butter, then add the diced onion and jalapeño. Cook for 3-4 minutes, stirring occasionally, until the vegetables are softened and fragrant—this develops the foundational flavors of the dip.

Stir in the garlic powder, cumin, smoked paprika, salt, and cayenne pepper into the softened onions and jalapeños, cooking for about 30 seconds until fragrant. This blooming technique releases the oils in the spices and intensifies their flavors. Add the canned diced tomatoes with green chiles and the chicken broth, stirring to combine. Place the cubed cream cheese on top of the mixture (don't stir it in yet—it will incorporate as pressure builds).

Lock the lid on your Instant Pot and set it to cook on high pressure for 1 minute. This brief cooking time allows the cream cheese to soften and begin blending with the aromatics and spices while keeping the dip fresh and vibrant. Once the timer sounds, perform a quick release by carefully opening the pressure valve to let steam escape, then remove the lid.

Turn off the Sauté function and stir the mixture thoroughly to break down the cream cheese. Pour in the heavy cream and stir well to incorporate. Now gradually add the shredded cheddar and Monterey Jack cheeses in small handfuls, stirring constantly between each addition until fully melted and smooth—this gradual approach prevents the cheeses from clumping and ensures a silky, creamy texture. I like to finish with a squeeze of fresh lime juice, which brightens all the rich, savory flavors and adds a subtle complexity.

Let the dip sit for 2-3 minutes to thicken slightly—it will continue to set as it cools slightly, creating the perfect consistency for dipping. Transfer to a serving bowl or keep warm in the Instant Pot on the Keep Warm function. Garnish with fresh cilantro and serve immediately with restaurant-style tortilla chips for scooping.