Preheat your oven to 375°F (190°C).
Heat olive oil in a large skillet over medium heat. Add the chopped onion and sauté for 2-3 minutes, until softened.
Add the ground beef to the skillet and cook, breaking it up with a spoon, until browned and fully cooked, about 5-7 minutes. Drain any excess grease.
Step 2: Season the Beef
Stir in the taco seasoning mix and water, following the instructions on the packet (usually simmer for about 5 minutes).
Add the drained diced tomatoes and green chilies (if using) and mix well. Let the mixture simmer for another 2 minutes.
Step 3: Assemble the Casserole
Transfer the seasoned beef mixture into a 9×13-inch baking dish and spread it out evenly.
Sprinkle 1 cup of shredded cheddar cheese over the beef mixture.
Carefully arrange the frozen tater tots in a single layer on top of the casserole, covering the cheese and beef completely.
Step 4: Bake the Casserole
Place the casserole in the preheated oven and bake for 25-30 minutes, or until the tater tots are golden brown and crispy.
Sprinkle the remaining shredded cheddar cheese over the casserole and bake for an additional 5 minutes, until the cheese is melted.
Step 5: Serve and Garnish
Let the casserole cool for a few minutes before serving.
Top with a dollop of sour cream and garnish with fresh cilantro if desired.
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