1. Cook the Sausage
In a large skillet, cook the ground sausage over medium heat, breaking it apart with a spoon as it cooks. Once browned and cooked through, drain any excess grease and set the sausage aside.

2. Combine the Cheese and Tomatoes
In the same skillet, add the softened cream cheese and diced tomatoes with green chilies. Stir occasionally until the cream cheese melts and everything is well combined.

3. Add the Sausage and Spices
Add the cooked sausage to the skillet and mix well. Stir in the garlic powder, onion powder, salt, and pepper to taste. Gradually add the shredded cheddar and mozzarella cheeses, stirring until the dip becomes smooth and creamy.

4. Adjust Consistency
If the dip is too thick, add a little milk, one tablespoon at a time, until you reach your desired consistency.

5. Serve
Transfer the dip to a serving dish and serve warm with tortilla chips, crackers, or fresh vegetables for dipping.