Preheat your oven to 400°F and line a large baking sheet with parchment paper. While the oven heats, prepare your mini peppers by slicing them in half lengthwise and carefully removing the seeds and membranes—this creates perfect vessels for your filling. Finely chop the mushrooms to match the texture of ground turkey, which helps create a cohesive, well-textured filling. Shred the cheddar cheese from a block rather than using pre-shredded for better melting and creamier results. Have all ingredients measured and ready before you begin cooking.

Heat a large skillet over medium-high heat and add the ground turkey with the finely chopped mushrooms. Cook for 6-8 minutes, breaking up the turkey as it cooks, until the meat is no longer pink and the mushrooms have released their moisture and begun to brown slightly. The mushrooms will add an earthy depth and help create a richer texture. Drain any excess liquid from the pan using a colander or by tilting the pan and pressing with a spatula—this prevents the filling from becoming watery.

Return the drained turkey and mushroom mixture to the skillet and stir in the taco seasoning, garlic powder, softened cream cheese, and queso. Cook over medium heat for 1-2 minutes, stirring constantly, until the cheeses melt and everything is well combined into a creamy, cohesive filling. Taste and add hot sauce to your desired heat level—I like to start with a teaspoon and adjust from there, as the heat will concentrate slightly during baking. The cream cheese adds richness while the queso provides a smooth, authentic flavor base.

Arrange the prepared pepper halves cut-side up on your prepared baking sheet. Divide the turkey and mushroom filling evenly among the peppers, filling each one generously. Top each pepper with the freshly shredded cheddar cheese, distributing it evenly so each pepper gets a nice cheesy crust. Bake in the preheated 400°F oven for 15-16 minutes until the peppers are tender, the cheese is melted and lightly golden, and the filling is heated through.