In a large skillet over medium heat, add the ground beef and cook until browned. Drain any excess fat, then stir in the taco seasoning and water. Allow it to simmer for about 5 minutes until the mixture thickens.
In a mixing bowl, combine the softened cream cheese with the enchilada sauce and set aside.
Preheat your oven to 350°F (175°C). In the bottom of a greased 9x13-inch baking dish, spread a thin layer of the beef mixture. Place four tortillas on top, overlapping them slightly.
Spread half of the cream cheese mixture over the tortillas, followed by half of the remaining beef mixture. Then add a layer of Rotel tomatoes and 1 cup of shredded Mexican cheese blend. Repeat this layering process until you have used up all the ingredients, finishing with a final layer of tortillas topped with the remaining cheese.
Cover the casserole with aluminum foil and bake in the preheated oven for 25 minutes. Remove the foil and bake for an additional 10-15 minutes, or until the cheese is bubbly and golden brown.
Once out of the oven, let the casserole cool for a few minutes before slicing. Serve hot, garnished with your favorite toppings like sour cream, fresh cilantro, or avocado slices.