Preheat oven to 425°F (220°C). Place red bell peppers and jalapeños on a baking sheet. Roast until skins blister and char, about 20-25 minutes, turning once.

Peel, deseed, and chop

Transfer peppers to a bowl, cover for 10 minutes to steam, then peel skins. Remove stems and seeds; roughly chop peppers. Seed jalapeños if you want less heat.

Sauté aromatics

Heat a tablespoon of oil in a skillet over medium heat. Sauté onion until translucent, about 4-5 minutes. Add garlic; cook 1 minute more.

Blend peppers with tomatoes

In a blender or processor, combine roasted peppers, jalapeños, canned fire-roasted tomatoes, and tomato sauce. Blend until smooth or to your desired texture.

Melt the cheese base

In a saucepan over medium-low heat, add the cream cheese and warm until softened, then whisk in the pepper-tomato mixture until smooth.

Finish with cheese and spices

Stir in shredded cheddar, smoked paprika, cumin, salt, and black pepper. Continue cooking until cheese is melted and dip is glossy, about 3-5 minutes.

Brighten and finish

Remove from heat. Stir in lime juice and cilantro. Taste and adjust seasoning with more salt if needed.

Serve

Transfer to a warm serving dish. Serve with tortilla chips on the side.