Place the cottage cheese, nutritional yeast, garlic powder, onion powder, cumin, and smoked paprika into a high-speed blender or food processor.
Process the mixture until the texture is completely smooth and aerated, approximately 60 to 90 seconds.
Transfer the blended mixture into a microwave-safe bowl or a small heavy-bottomed saucepan.
Fold in the drained green chiles and the shredded sharp cheddar cheese until evenly distributed.
Heat the mixture over low heat on the stovetop or in 30-second intervals in the microwave, stirring between each interval until the cheddar is fully melted and the dip is warm.
Season with salt to taste and serve immediately with tortilla chips or vegetable crudités.