Heat olive oil in a large skillet over medium heat. Add onion, green bell pepper, and red bell pepper, sautéing for 5-7 minutes.

Add ground beef, breaking it apart and cooking for 7-10 minutes until browned. Drain any excess fat.

Stir in taco seasoning, tomato sauce, diced green chilies, and water. Simmer for 10-15 minutes until thickened.

Warm corn tortillas to prevent cracking. Use microwave, dry skillet, or preheated oven.

In a separate bowl, mix cheddar and Monterey Jack cheese until well-blended.

Preheat oven to 350°F (175°C) and grease a 9x13 inch baking dish.

Dip each tortilla in enchilada sauce, fill with beef and cheese mixture, and roll them tightly.

Pour remaining enchilada sauce over tortillas and sprinkle remaining cheese. Ensure everything is covered.

Cover with foil and bake for 20 minutes. Remove foil and bake for another 10-15 minutes until cheese is bubbly.

Let rest for 5-10 minutes before serving. Garnish with optional toppings.