Description

This Cheesy Low Carb Taco Casserole is a delicious and comforting dish perfect for a low-carb lifestyle. Ground beef (or turkey or chicken) is cooked with onions, bell peppers, and diced tomatoes with green chilies, then combined with a creamy mixture of cream cheese, sour cream, and spices. Topped generously with shredded cheese and baked to bubbly, golden perfection, this keto-friendly casserole is easy to prepare, packed with flavor, and perfect for meal prep or family dinners.

Ingredients

Scale

Meat and Vegetables

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

Liquids & Seasoning

2 tablespoons olive oil or avocado oil
1 (1-ounce) packet low-carb taco seasoning
½ cup water or beef broth

Creamy Mixture

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

Topping

2 cups shredded cheddar cheese, Monterey Jack, or a Mexican blend

Instructions

Prepare Ingredients & Preheat Oven: 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.
Brown the Ground Meat: Heat 2 tablespoons of olive oil in a large skillet or Dutch oven over medium-high heat. Add your ground beef (or chosen meat), break it up, and cook, stirring occasionally, until completely browned (7-10 minutes). Drain off any excess fat.
Sauté Aromatics & Season: 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.
Simmer the Filling: 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.
Prepare the Creamy Mixture: 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.
Combine Meat & Creamy Layers: 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.
Assemble the Casserole: 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 cheddar (or blend) cheese evenly over the top.
Bake to Perfection: 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, you can loosely tent the dish with aluminum foil for the last 10 minutes.
Rest, Garnish & Serve: Once baked, remove the casserole from the oven and let it rest on a wire rack for 5-10 minutes before serving. Garnish generously with optional fresh toppings such as chopped cilantro, diced avocado/guacamole, extra sour cream, sliced jalapeños, hot sauce, or shredded lettuce. Serve warm.
Storage Instructions: Store any leftovers covered tightly in the refrigerator for up to 3-4 days. Reheat in the microwave or oven. Add fresh avocado toppings just before serving.

Notes

For a lower-fat option, use ground turkey or chicken instead of beef.
Heavy cream in the creamy mixture is optional but adds richness.
Adjust seasoning according to your spice preference.
You can swap cheddar cheese for Monterey Jack or a Mexican blend for different flavors.
Leftovers store well and make for quick reheated meals.
Serve with fresh toppings like avocado or jalapeños to add extra texture and flavor.

Prep Time: 15 minutes
Cook Time: 40 minutes
Category: Casserole
Method: Baking
Cuisine: Mexican-American

Keywords: low carb casserole, cheesy taco casserole, keto taco bake, ground beef casserole, Mexican casserole, easy low carb dinner