We introduce the TangoSIDM project, a suite of cosmological simulations of structure formation in a Λ-Self-Interacting Dark Matter (SIDM) universe. TangoSIDM explores the impact of large dark matter (DM) scattering cross sections over dwarf galaxy scales. Motivated by DM interactions that follow a Yukawa potential, the cross section per unit mass, 𝜎/𝑚 𝜒 , assumes a velocity dependent form that avoids violations of current constraints on large scales. We demonstrate that our implementation accurately models not only core formation in haloes, but also gravothermal core collapse. For central haloes in cosmological volumes, frequent DM particle collisions isotropise the particles orbit, making them largely spherical. We show that the velocity-dependent 𝜎/𝑚 𝜒 models produce a large diversity in the circular velocities of satellites haloes, with the spread in velocities increasing as the cross sections reach 20, 60 and 100 cm 2 /g in 10 9 M haloes. The large variation in the haloes internal structure is driven by DM particles interactions, causing in some haloes the formation of extended cores, whereas in others gravothermal core collapse. We conclude that the SIDM models from the Tango project offer a promising explanation for the diversity in the density and velocity profiles of observed dwarf galaxies.