Preheat your oven to 350 degrees Fahrenheit. While the oven is warming up, lightly grease a medium sized baking dish with a small amount of butter or non stick spray. Ensure your cream cheese is soft enough to mix easily by leaving it on the counter for at least thirty minutes prior to starting.
In a large mixing bowl, combine the softened cream cheese and sour cream. Use a hand mixer or a sturdy spatula to blend them together until the mixture is completely smooth and free of any lumps. This creates the silky foundation that makes the Texas Christmas Dip so addictive.
Stir in the garlic powder, ground cumin, and smoked paprika until the spices are evenly distributed. Add the drained sweet corn, diced green chiles, and the finely diced red bell pepper. The red and green colors will immediately give the dip its signature Christmas look.
Fold in one and a half cups of the shredded sharp cheddar cheese and the crumbled turkey bacon. Mix gently so that the ingredients are well incorporated but the vegetables retain their texture. Save the remaining half cup of cheese to use as a topping.
Spread the mixture evenly into your prepared baking dish. Sprinkle the remaining cheddar cheese over the top in an even layer. Place the dish in the oven and bake for 20 minutes, or until the cheese is bubbly and the edges are starting to turn a light golden brown. Garnish with green onions and fresh cilantro before serving warm.