In a medium saucepan over low heat, combine the softened cream cheese and milk. Stir until the cream cheese is melted and the mixture is smooth.
Gradually add the shredded Monterey Jack and white cheddar cheeses, stirring continuously until fully melted and creamy.
Stir in the diced green chilies, garlic powder, onion powder, cumin, salt, and pepper. Mix well to combine all ingredients.
Continue to cook on low heat for an additional 2-3 minutes, stirring frequently to prevent sticking.
Once the dip is smooth and heated through, remove from heat and transfer to a serving bowl. Garnish with chopped cilantro if desired.
Serve warm with tortilla chips, fresh veggies, or your favorite dippers.