Spread cream cheese evenly on the bottom of a 2 qt. casserole dish. Spread chili on top of cream cheese. Grate (or shred) Monterey Jack cheese – layer on top of chili. Slice Velveeta cheese into ¼” thin slices (you can grate it if you want, but I find the Velveeta cheese works better sliced). Layer Velveeta cheese over Monterey jack cheese. Optional – sprinkle sliced jalapeño peppers on top.
Bake at 350ºF for 20 min, or until cheese is melted starting to brown.