Tear up the tortillas into large bite-sized pieces.
Heat the olive oil in a large to medium-sized frying pan over medium heat. Add chili powder and cook for about 30 seconds, then add tortillas and stir, coating the tortillas with chili oil.
Blend all remaining ingredients except queso until smooth. Pour mixture over tortillas in the pan.
Top with queso and cover, turning down heat to medium low. Cook until heated all the way through, about 25 minutes.