In a blender, combine the cottage cheese, shredded cheddar cheese, and milk. Blend until smooth.

In a saucepan over medium heat, pour the blended mixture and add the diced tomatoes, jalapeño, garlic powder, onion powder, cumin, salt, and black pepper.

Stir continuously until the mixture is heated through and the cheese is melted, about 10-15 minutes.

Remove from heat and serve warm with tortilla chips or as a topping for tacos.