Add drained cashews, ½ cup warm water, nutritional yeast, lime juice, garlic powder, onion powder, salt, chili powder, and hot sauce to a high-speed blender.

Blend on high for 1–2 minutes until completely smooth and creamy. Scrape down the sides if needed.

Add more water to reach the desired consistency, taste, and adjust seasoning if needed (add more salt, lemon, or spice).

Serve warm with tortilla chips, veggies, or use as a topping for tacos, bowls, or nachos.