Cook the chorizo in a large skillet over medium-high heat until browned, about 5 minutes. Add onion and jalapeño, cook 3 minutes, then add garlic and cook 30 seconds.

Stir in tomato paste, chili powder, cumin, and smoked paprika, cooking 30 seconds until fragrant.

Add milk, cream, 2 cups water, macaroni, corn, and black beans. Bring to a simmer, then reduce heat to low and cook, stirring occasionally, until pasta is tender and sauce thickens, about 12 minutes.

Remove from heat and stir in cheddar and pepper jack a handful at a time until smooth. Taste and season with salt and pepper. Serve in bowls topped with pickled jalapeños, cilantro, and lime wedges.