In a large pot of water, bring potatoes and carrots to a boil. Once fork-tender, drain water from pot, and transfer vegetables to a food processor.

Add water, olive oil, lemon juice, nutritional yeast flakes, garlic powder, onion powder, salt, and pepper to food processor and blend until smooth. Taste and adjust seasoning, if needed.

Transfer sauce to cast iron skillet and stir in RO*TEL® Original Diced Tomatoes and Green Chilies. If the mixture is too thick, add additional water one tablespoon at a time.

Warm on stovetop then serve, garnished with jalapeño, fresh cilantro, and lime juice.