Preheat Oven: Preheat your oven to 375°F (190°C). Line a baking sheet with parchment paper or a silicone baking mat.
Mix Ingredients: In a large mixing bowl, combine the ground sausage, softened cream cheese, drained Rotel tomatoes, shredded cheddar cheese, flour, garlic powder, onion powder, salt, black pepper, and chili powder (if using). Mix until everything is well combined.
Form the Balls: Using your hands, scoop out about 1-2 tablespoons of the mixture and roll it into a ball. Place the formed sausage balls onto the prepared baking sheet, spacing them about 2 inches apart.
Bake: Bake in the preheated oven for 20-25 minutes, or until the sausage balls are golden brown and cooked through (internal temperature should reach 160°F/74°C).
Serve: Remove from the oven and let cool for a few minutes before serving. Enjoy your Rotel Cream Cheese Sausage Balls warm or at room temperature.