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Halve, peel, and finely dice the onion into ¼-inch pieces.
Heat a drizzle of oil in a medium pot (use a large pot for 4 servings) over medium-high heat. Add sausage and cook, breaking up meat into pieces, until browned and cooked through, 4-6 minutes.
Lower heat under pot to medium. Add diced onion; cook, stirring occasionally, until beginning to soften, 1-2 minutes. Stir in rice, the Ranch Spice, 3 cups water, and a pinch of salt. Bring to a boil, then cover and reduce heat to low. Cook until rice is tender, 15-18 minutes.
Meanwhile, in a second small microwave-safe bowl, combine cream cheese with ¼ cup water. Microwave for 30 seconds, then whisk until smooth. Once tender, fluff rice mixture with a fork. Stir in cream cheese mixture and half the cheddar, adding splashes of water if needed, until creamy. Stir in sour cream until combined.
Divide sausage and rice between bowls. Top with remaining cheddar.