In a large skillet over medium heat, add your lean ground beef. Cook, breaking it apart with a spatula until browned and cooked through, about 5-7 minutes. Drain any excess fat.
Pour the taco seasoning mix over the cooked beef, along with the 1/4 cup of water. Stir to combine, and let it simmer for about 2-3 minutes until the mixture thickens and is well combined. Remove from heat and let it cool slightly.
In a mixing bowl, combine the cream cheese, cottage cheese, and salsa. Mix until smooth and well combined.
In a serving dish, spread the creamy mixture evenly across the bottom. Top it with the seasoned ground beef mixture, followed by a generous layer of shredded cheddar cheese.
Next, layer on the shredded lettuce, chopped tomatoes, and diced avocado (if using). Finish with a sprinkle of fresh cilantro for a touch of color and flavor.
Serve your Taco Salad Dip with taco chips or firm tortillas for dipping. Enjoy this delicious, flavorful dip with family and friends!