Wash the jalapeño, trim off the stem, and finely mince it. Remove the seeds and inner membrane for a milder queso or leave some intact for additional heat.
Add the 2 cups of cottage cheese to a blender or food processor and blend until completely smooth and creamy. Stop and scrape the sides if necessary. Continue blending until the visible cottage cheese curds are gone.
Pour the blended cottage cheese into a medium saucepan and add the ½ cup unsweetened almond milk. Place the saucepan over low to medium-low heat and gently warm the mixture without allowing it to boil.
Cut the 4 ounces of cream cheese into small cubes and add them to the warm cottage cheese mixture. Stir continuously but gently with a silicone spatula until the cream cheese softens and becomes incorporated into the mixture.
Gradually add the 1½ cups shredded cheddar cheese, approximately ½ cup at a time. Stir after each addition until the cheese is mostly melted before adding more. Keep the heat low throughout this process to prevent the sauce from becoming oily or grainy.
Once the cheddar has melted and the queso is creamy, stir in the minced jalapeño, garlic powder, cumin, chili powder, smoked paprika, black pepper, and salt.
Continue stirring over low heat for another 1–2 minutes so the seasonings become evenly distributed throughout the queso. Do not let the mixture boil.
Remove the saucepan from the heat and stir in 1 tablespoon fresh lime juice. Taste the queso carefully and adjust the salt, jalapeño, chili powder, or lime juice according to your preference.
Check the consistency. If the queso is thicker than you want, stir in unsweetened almond milk 1 tablespoon at a time until it becomes smooth and scoopable. Remember that the queso will thicken slightly as it cools.
Transfer the warm queso to a serving bowl and garnish with optional fresh cilantro, minced jalapeño, shredded cheddar, smoked paprika, or a small squeeze of lime.
Serve immediately with keto-friendly tortilla chips, cucumber, celery, broccoli, cauliflower, cooked chicken, burgers, tacos, or your favorite low-carb dipping foods.
Store any leftovers in an airtight container in the refrigerator for up to 3–4 days. Reheat gently on the stovetop or in short microwave intervals, adding a small splash of unsweetened almond milk if needed to restore the creamy consistency.