Heat olive oil in a large skillet over medium heat.
Add the chopped onion and cook for 3-4 minutes until softened.
Add the minced garlic and jalapeño pepper and cook for 1 minute until fragrant.
Add the ground beef to the skillet and cook, breaking it apart with a spatula, until browned and cooked through, about 6-7 minutes.
Drain any excess fat from the skillet.
Stir in ground cumin, chili powder, smoked paprika, salt, and black pepper. Cook for 1 minute to toast the spices.
In a small bowl, whisk together cornstarch and water until smooth.
Reduce the heat to low and add the shredded cheddar and Monterey Jack cheeses to the skillet with the beef mixture.
Slowly pour in the low-fat milk while stirring continuously until the cheese melts and the mixture is smooth.
Add the cornstarch slurry to the skillet and stir constantly until the queso thickens, about 2-3 minutes.
Remove from heat and stir in chopped fresh cilantro.
Serve warm with tortilla chips or as a topping for tacos or burritos.