In a mixing bowl, beat cream cheese, until smooth. Slowly beat in squash and taco seasoning until thoroughly blended. Stir in peppers. Cover and refrigerate until served.
*To cook squash: cut in half, lengthwise then using a strong spoon, scoop out seeds. To bake: add about a cup of water to 13x9 inch baking dish; place squash in dish, cut-side down. Cover. Bake at 425 degrees for 40 min or until tender. To microwave: place squash, cut-side down, on a microwave safe plate. Microwave 10 minutes or until soft. Scoop out the cooked squash and mash.