Preheat your oven to 375°F (190°C). Line a baking sheet with parchment paper.
In a large mixing bowl, add the ground breakfast sausage and softened cream cheese. Mix until thoroughly combined.
Stir in the drained diced tomatoes with green chilies, shredded cheddar cheese, baking mix, garlic powder, and black pepper. Mix until everything is evenly incorporated and a thick dough forms.
Roll the mixture into approximately 1-inch balls using your hands or a small cookie scoop. Arrange them on the prepared baking sheet, leaving a little space between each ball.
Bake for 20–25 minutes, or until the sausage balls are golden brown and the sausage is fully cooked through.
Remove the baking sheet from the oven and let the sausage balls cool slightly before serving. Enjoy them warm while the cheese is still deliciously melty.