Cheesy Low Carb Taco Casserole Recipe
Introduction
This Cheesy Low Carb Taco Casserole is a flavorful and hearty dish perfect for those watching their carb intake. Loaded with seasoned ground meat, creamy cheese layers, and a blend of spices, it’s comfort food made healthy. It’s easy to prepare and sure to satisfy taco cravings without the tortillas.

Ingredients
- 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
- 2 tablespoons olive oil or avocado oil
- 1 (1-ounce) packet low-carb taco seasoning
- ½ cup water or beef broth
- 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
- 2 cups shredded cheddar cheese, Monterey Jack, or a Mexican blend
Instructions
- Step 1: 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.
- Step 2: Heat 2 tablespoons of olive oil in a large skillet or Dutch oven over medium-high heat. Add your ground meat, break it up, and cook, stirring occasionally, until completely browned, about 7-10 minutes. Drain off any excess fat.
- Step 3: Return drained meat to the skillet. Add the diced onion and bell peppers. Cook over medium heat for 5-7 minutes, stirring frequently, until vegetables soften. Sprinkle the taco seasoning over the mixture, stir well, and cook for an additional minute until fragrant.
- Step 4: Pour in the undrained diced tomatoes with green chilies and ½ cup of water or beef broth. Stir together and bring to a gentle simmer. Reduce heat to low, cover, and cook for 5-10 minutes to meld flavors. Taste and adjust salt and pepper as needed. Remove from heat.
- Step 5: In a medium bowl, combine the softened cream cheese, sour cream, optional heavy cream, garlic powder, and onion powder. Whisk until completely smooth and free of lumps.
- Step 6: Fold about two-thirds of the creamy mixture into the skillet with the meat and vegetables. Stir gently to combine. Transfer this mixture to the prepared baking dish and spread evenly.
- Step 7: Dollop the remaining one-third of the creamy mixture over the meat layer and gently spread it into an even layer. Sprinkle the shredded cheese evenly over the top.
- Step 8: Bake in the preheated oven for 25-30 minutes, until the casserole is bubbling around the edges and the cheese is melted, golden, and lightly bubbly. If the cheese browns too quickly, tent loosely with foil during the last 10 minutes.
- Step 9: Remove from oven and let rest for 5-10 minutes before serving. Garnish with chopped cilantro, diced avocado, extra sour cream, jalapeños, or your favorite toppings. Serve warm.
Tips & Variations
- Use ground turkey or chicken for a leaner option without sacrificing flavor.
- Add a ¼ cup of chopped jalapeños to the meat mixture for extra heat.
- Substitute cream cheese with Greek yogurt for a lighter creamy layer.
- Top with fresh avocado or guacamole right before serving for added creaminess and healthy fats.
- If dairy-free, use dairy-free cream cheese and yogurt alternatives, and check for low-carb taco seasoning options without additives.
Storage
Store any leftovers tightly covered in the refrigerator for up to 3-4 days. Reheat portions in the microwave or oven until warmed through. Add fresh toppings like avocado or sour cream after reheating for the best flavor.
How to Serve

Serve this delicious recipe with your favorite sides.
FAQs
Can I make this casserole ahead of time?
Yes, you can prepare the casserole up to step 7, cover it, and refrigerate overnight. Bake it just before serving, adding a few extra minutes to the baking time if needed.
Is this recipe suitable for a keto diet?
Absolutely! This casserole is low in carbs and rich in fats and protein, making it a great choice for a keto-friendly meal.

