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In a medium skillet over medium heat, cook sausage until deeply golden, shaking the skillet occasionally, 7 to 9 minutes. Transfer meatballs to a plate and keep 2 tablespoons fat in the skillet.
Return skillet to medium-high heat and stir in onions, jalapeño, garlic, salt, and pepper. Cook, stirring constantly, until golden and lightly caramelized, 3 to 4 minutes.
Reduce heat to medium-low. Add BBQ sauce, cooked meatballs, and cream cheese and stir until smooth. Remove from heat and stir in shredded cheeses, pickled red onions, and milk until melty and incorporated.
Garnish with scallions and more pickled red onions before serving warm with tortilla chips.