Preheat your oven to 350ºF. This is crucial to ensure that your casserole bakes evenly. Lightly spray a 9×13-inch baking dish with cooking spray to prevent sticking, and set it aside.
In a large skillet, brown the ground beef over medium-high heat. As it cooks, break it apart with a spatula. Once the beef is no longer pink and has browned nicely, drain any excess fat.
Add the taco seasoning and water to the skillet. Stir to combine and let it simmer until the liquid is absorbed, about 5 minutes. This process intensifies the flavors of the beef.
Next, pour in the enchilada sauce and the undrained can of Rotel tomatoes and diced green chiles. Stir well and let this mixture simmer for an additional 5 minutes. The sauce should be bubbling and fragrant.
Remove the skillet from heat and prepare your baking dish. Spread half of the sauce mixture in the bottom of the greased baking dish, creating a nice base for the casserole.
Now, take the cream cheese and spread it evenly on the flour tortillas. This step adds a creamy layer that melts beautifully during baking.
Next, sprinkle about 2 cups of the shredded Mexican cheese blend on top of the cream cheese. Then, fold each tortilla in half, creating a pocket for the delicious filling.
Arrange the folded tortillas on top of the meat sauce in the baking dish. Pour the remaining sauce mixture over the tortillas, making sure to cover them generously.
Finally, sprinkle the remaining cup of shredded cheese on top of the sauce. This will create a wonderfully cheesy crust that’s hard to resist.
Cover the dish with aluminum foil and place it in the preheated oven. Bake for 20 to 25 minutes, or until the cheese is melted and the casserole is heated through.