Introduction

This Cheesy Low Carb Taco Casserole is a comforting, flavorful meal perfect for busy weeknights or casual gatherings. Combining seasoned ground meat, creamy cheese layers, and bold taco spices, it’s a satisfying dish that keeps carbs low without sacrificing taste.

A square piece of layered taco casserole sits on a white plate, showing three layers of rich, cooked ground beef mixed with seasoning and melted orange cheese between soft tortillas. On top, there is a thick layer of shredded green lettuce, and a dollop of white sour cream sits in the center. The sour cream is topped with sliced black olives, small chopped red tomatoes, green jalapeño slices, and some chopped green onions. A few bits of lettuce and cheese spill slightly onto the plate. The background is a white marbled texture. Photo taken with an iphone --ar 4:5 --v 7

Ingredients

2 pounds ground beef (80/20 or 85/15), ground turkey, or ground chicken
1 large yellow onion, finely diced
2 bell peppers (any color), cored and diced
1 (10-ounce) can diced tomatoes with green chilies (Rotel), undrained
2 tablespoons olive oil or avocado oil
1 (1-ounce) packet low-carb taco seasoning
½ cup water or beef broth
8 ounces cream cheese, softened to room temperature
½ cup sour cream (full-fat)
¼ cup heavy cream (optional)
½ teaspoon garlic powder
¼ teaspoon onion powder
Salt and freshly ground black pepper to taste
2 cups shredded cheddar cheese, Monterey Jack, or a Mexican blend

Instructions

Step 1: Preheat your oven to 375°F (190°C) and lightly grease a 9×13-inch baking dish. Ensure cream cheese is softened, and dice the yellow onion and bell peppers. Open canned ingredients.
Step 2: Heat 2 tablespoons of olive oil in a large skillet or Dutch oven over medium-high heat. Add your ground meat, break it up, and cook, stirring occasionally, until completely browned (7-10 minutes). Drain off any excess fat.
Step 3: Return drained meat to the skillet. Add the finely diced yellow onion and bell peppers. Cook over medium heat for 5-7 minutes, stirring frequently, until vegetables soften. Sprinkle the low-carb taco seasoning over the mixture, stir well, and cook for an additional minute until fragrant.
Step 4: Pour in the undrained diced tomatoes with green chilies and ½ cup of water or beef broth. Stir everything together. Bring to a gentle simmer, then reduce heat to low, cover, and cook for 5-10 minutes to meld flavors. Taste and adjust salt and pepper if necessary. Remove skillet from heat.
Step 5: In a separate medium-sized bowl, combine the softened cream cheese, sour cream, optional heavy cream, garlic powder, and onion powder. Whisk or mix thoroughly until the mixture is completely smooth and free of lumps.
Step 6: Gently fold about two-thirds of the smooth creamy mixture into the skillet with the seasoned meat and vegetables. Stir until just combined. Transfer this meat and creamy mixture to the prepared 9×13-inch baking dish and spread evenly.
Step 7: Carefully dollop the remaining one-third of the plain creamy mixture over the meat layer and gently spread it out into an even layer. Generously sprinkle the 2 cups of shredded cheese evenly over the top.
Step 8: Place the baking dish into your preheated oven. Bake for 25-30 minutes, or until the casserole is bubbling around the edges and the cheese on top is melted, golden brown, and slightly bubbly. If the cheese browns too quickly, loosely tent the dish with aluminum foil for the last 10 minutes.
Step 9: Once baked, remove the casserole from the oven and let it rest on a wire rack for 5-10 minutes before serving. Garnish with optional fresh toppings such as chopped cilantro, diced avocado or guacamole, extra sour cream, sliced jalapeños, hot sauce, or shredded lettuce. Serve warm.

Tips & Variations

For extra flavor, use a blend of ground meats like beef and pork or add a splash of lime juice to brighten the filling before baking.
You can substitute the cream cheese with Neufchâtel for a lighter option, but the casserole will be less creamy.
If you prefer a spicier casserole, add diced jalapeños to the meat mixture or use a hot taco seasoning.
Make it vegetarian by replacing the meat with cooked lentils or a meat substitute and adjusting seasoning accordingly.

Storage

Store any leftovers tightly covered in the refrigerator for up to 3-4 days. Reheat in the microwave or oven until warmed through. Add fresh avocado or other toppings just before serving for best flavor and texture.

How to Serve

The dish is a square piece with three visible layers of rich brown cooked ground beef mixed with a light orange sauce, separated by thin softened tortilla layers, and topped with melted bright orange cheddar cheese. On top of this, there is a layer of finely shredded light green lettuce, followed by a dollop of smooth white sour cream. The sour cream is garnished with small red tomato pieces, round black olive slices, and green jalapeño rings with visible seeds, along with some chopped green onions scattered over the top. The food sits on a simple white plate with a few stray bits of lettuce around it, against a background of white marbled texture. Photo taken with an iphone --ar 4:5 --v 7

Serve this delicious recipe with your favorite sides.

FAQs

Can I make this casserole ahead of time?

Yes, you can prepare the casserole up to the assembly step, cover it tightly, and refrigerate overnight. Bake it the next day, adding a few extra minutes to the baking time if it’s cold from the fridge.

Is this casserole suitable for freezer storage?

This casserole can be frozen before baking. Wrap it well with foil and plastic wrap. When ready to eat, thaw overnight in the fridge and bake as directed, adding extra time if needed. Note that texture of some creamy layers may slightly change after freezing.