Heat the oven to 375°F (190°C). Grease a 9x13-inch baking dish with a little oil or nonstick spray.
Sauté the veggies: Warm oil in a large skillet over medium heat. Add onion and bell peppers, and cook 5–7 minutes until softened.
Stir in garlic and cook 30 seconds more.
Season the veggie mix with chili powder, cumin, smoked paprika, oregano, salt, and pepper. Stir to coat and remove from heat.
Mix the creamy base: In a large bowl, combine softened cream cheese, sour cream, 1 cup of shredded cheese, and half of the enchilada sauce. Beat until smooth.
Fold in the diced green chiles.
Add the chicken: Stir shredded chicken into the creamy mixture until evenly coated.
Layer the casserole: Spread half of the seasoned veggies in the baking dish. Spoon half the chicken mixture over them. Pour a little sauce over the top and sprinkle with a handful of cheese.
Repeat with remaining veggies, chicken, a generous layer of sauce, and the rest of the cheese.
Bake uncovered for 20–25 minutes, until the casserole is bubbling and the top is lightly browned.
Rest and garnish: Let it sit for 5–10 minutes to set. Top with cilantro, green onions, and jalapeño slices if you like.
Serve with simple sides: a green salad, sliced avocado, or cauliflower rice.