Start by heating your large skillet over medium heat. Add the 2 lbs of lean ground beef and cook until browned, breaking it up with a wooden spoon as it cooks. This should take about 5-7 minutes. Make sure to drain any excess fat.
Once the beef is browned, stir in the 3 tbsp of taco seasoning. This is where the magic happens! The seasoning will infuse the beef with that classic taco flavor.
Next, pour in the 1 cup of tomato sauce and add the 2 tbsp of tomato paste. Mix everything together well, allowing the flavors to meld. Let it simmer for about 3-5 minutes, stirring occasionally.
Reduce the heat to low and add the 1/2 cup of sour cream and 4 oz of cream cheese to the skillet. Stir until everything is well combined and creamy.
Sprinkle 1/2 cup of the sharp cheddar cheese over the top of the skillet mixture. Cover the skillet with a lid and let it cook for an additional 2-3 minutes until the cheese is fully melted.
While the cheese is melting, prepare your fresh toppings. Shred the iceberg lettuce and dice the roma tomatoes.
Once the cheese has melted, remove the skillet from the heat. Serve the Taco Skillet Dinner directly from the pan, topped with the shredded lettuce, diced tomatoes, and the remaining 1/4 cup of cheddar cheese.