Prep the Pico: In a medium bowl, combine diced tomatoes, onion, cilantro, and optional jalapeño. Stir in lime juice and salt. Set aside to let the flavors meld.
Brown the Beef: In a large skillet over medium-high heat, brown the ground beef. Use a spatula to break it into very fine crumbles for that authentic fast-food texture. Drain excess fat.
Season and Simmer: Reduce heat to medium-low. Add water, tomato sauce, and all the spices (chili powder, cumin, paprika, onion/garlic powder, salt, pepper, oregano, and sugar). Simmer for 5–7 minutes until saucy and reduced.
Warm Tortillas: Wrap a stack of tortillas in a damp paper towel and microwave for 20–30 seconds until soft and flexible. Keep them covered in a kitchen towel.
Layer the Filling: Lay a warm tortilla flat. Down the center, layer 1/4 cup shredded cheese, 1/4 cup seasoned beef, and 1–2 tablespoons of pico de gallo.
Fold: Fold the sides over the filling and tuck in the ends like a small, tight burrito (or simply fold in half).
The "Steam" Finish: Place 1–2 wraps on a plate. Cover loosely with a damp paper towel and microwave for 20–30 seconds until the cheese is gooey and the tortilla is steamy.
Rest and Serve: Let sit for 1 minute to allow the heat to even out, then serve with your favorite hot sauce.