Heat oil in large pan or Dutch oven over medium-high heat. Add onion and garlic; cook until onion is tender.
Stir in flour and taco seasoning mix; gradually stir in milk until blended. Add remaining ingredients except cilantro.
Bring to a boil, stirring constantly. Reduce heat to low; simmer 15 minutes or until thickened, stirring occasionally.
Stir in cilantro.