In a mixing bowl, combine the softened cream cheese, sour cream, shredded cheddar cheese, and shredded Monterey Jack cheese until smooth.
Add the drained diced green hatch chiles, garlic powder, onion powder, cumin, salt, and black pepper to the cheese mixture. Stir until all ingredients are well combined.
Transfer the mixture to an oven-safe baking dish and spread it evenly.
Bake in the preheated oven for 20-25 minutes, or until the dip is bubbly and lightly golden on top.
Remove from the oven and let it cool for a few minutes before serving.
Garnish with chopped fresh cilantro if desired and serve with tortilla chips or fresh vegetables.
Notes
For a spicier dip, consider using hotter chiles or adding jalapeños.