Preheat the air fryer: Set it to 375°F (190°C) for 3–5 minutes so the basket is hot.
Warm the tortillas: Corn tortillas can crack when rolled. Wrap them in a damp paper towel and microwave for 30–45 seconds, or lightly toast them on a dry skillet for 15–20 seconds per side until pliable.
Mix the filling: In a bowl, combine shredded cheese, cream cheese (if using), green chiles or jalapeños, chili powder, cumin, garlic powder, salt, and pepper.
Stir until evenly mixed.
Fill and roll: Place 2–3 tablespoons of the cheese mixture along the lower third of a tortilla. Roll it up snugly into a tight cigar shape. Place seam-side down on a plate.
Repeat with remaining tortillas.
Brush lightly with oil: Use a small brush or your fingers to coat the tops and sides with a thin layer of oil. Don’t drench them—a light coat is enough for crisping.
Arrange in the air fryer: Place taquitos seam-side down in a single layer in the basket. Do not overcrowd. Work in batches if needed.
Air fry: Cook at 375°F (190°C) for 6–9 minutes, flipping halfway. They’re done when golden and crisp, and you might see a little cheese bubbling out the ends.
Serve: Let them cool for 1–2 minutes to set the cheese.
Squeeze with lime and serve with your favorite dips.