In a medium skillet over medium heat, cook the ground sausage until browned and fully cooked, breaking it apart with a wooden spoon. Drain any excess grease.
Reduce the heat to low and add the softened cream cheese to the skillet, stirring until melted and well combined with the sausage.
Mix in the shredded cheddar cheese and Monterey Jack cheese, stirring until melted and smooth.
Add the sour cream, garlic powder, onion powder, black pepper, salt, and cayenne pepper (if using). Stir thoroughly until completely combined and heated through.
Remove the dip from heat and transfer it to a mixing bowl or serving dish. Serve warm with tortilla chips or crackers.
For a spicier dip, you can add diced jalapeños or a splash of hot sauce.
This dip can be made ahead of time; simply reheat in the microwave before serving for best results.
Store any leftovers in an airtight container in the refrigerator for up to 3 days.