Preheat the oven: Preheat your oven to 375°F and lightly grease a 9-inch baking dish. Set it aside while you cook the sausage.

Brown the sausage: Cook the beef sausage in a large skillet over medium heat, breaking it into small crumbles with a spoon. Cook until no pink remains and the edges turn deep brown, about 7 minutes.

Drain excess fat: Tilt the skillet and spoon off any excess fat left from the sausage. This keeps the finished dip from turning greasy once it bakes.

Melt in the cream cheese: Add the softened cream cheese, garlic, smoked paprika and cayenne to the skillet. Stir over low heat until the cream cheese melts completely and coats the sausage, about 3 minutes.

Stir in sour cream and tomatoes: Mix in the sour cream and drained diced tomatoes with green chilies. Stir until the mixture looks even and creamy throughout.

Fold in half the cheese: Add half of the pepper jack and half of the cheddar cheese to the skillet. Stir until just melted and streaky, then remove from heat.

Transfer to baking dish: Spread the mixture evenly into the prepared baking dish. Smooth the top with a spatula so it bakes evenly.

Top with remaining cheese: Sprinkle the remaining pepper jack and cheddar over the top, then scatter the chopped pickled jalapeños evenly across the surface.

Bake until bubbly: Bake for 18 to 22 minutes, until the cheese turns spotty golden and the edges bubble actively. Watch closely in the last few minutes so it doesn't overbake.

Rest before serving: Let the dip rest for 5 minutes out of the oven so it firms up slightly and becomes easier to scoop. Garnish with sliced green onions before serving.