In a high speed blender or food processor, add cottage cheese, cheddar cheese, milk and taco seasoning. Process until smooth, pausing and scraping the walls with spatula and adding more milk, if necessary.
Transfer to a medium microwave safe bowl and microwave 2 times in 15-20 seconds increments, stirring once in the middle and once at the end.
Top with chopped tomato, jalapeno, red onion and cilantro. Serve immediately with tortilla chips or fresh veggies.
Video
Notes
Store: Refrigerate in an airtight container for up to 2-3 days. Be careful reheating it as cottage cheese curdles quickly. I would reheat in a microwave in two 20 seconds increments, stirring in between. More likely it will curdle if reheating on the stove.