Prep the oven and pan: Preheat your oven to 400°F (200°C). Lightly grease a 9x13-inch baking dish.

Slice the veggies: Cut bell peppers into thin strips and the onion into thin slices. Aim for even sizes so they cook at the same rate.

Cut the chicken: Slice chicken into bite-sized strips or 1-inch pieces. Pat dry with paper towels for better browning.

Mix the seasoning: In a small bowl, combine chili powder, cumin, smoked paprika, garlic powder, onion powder, oregano, salt, black pepper, and optional cayenne.

Sear the chicken: Heat oil in a large skillet over medium-high. Add chicken and half the seasoning. Sear 3–4 minutes, stirring occasionally, until lightly browned but not fully cooked. Transfer to a large bowl.

Soften the veggies: In the same skillet, add peppers and onions. Sprinkle with the remaining seasoning. Sauté 4–5 minutes until slightly softened and fragrant. Transfer to the bowl with the chicken.

Make the creamy base: In a separate bowl, whisk together softened cream cheese, sour cream, lime zest, and 1 tablespoon lime juice until smooth. If it’s too thick, microwave the cream cheese 15–20 seconds to soften more.

Combine everything: Add the cream mixture to the chicken and veggies. Stir well to coat. Fold in 1 cup of shredded cheese.

Assemble: Spread the mixture evenly in the baking dish. Top with the remaining 1 cup shredded cheese.

Bake: Bake 18–22 minutes, until bubbly and the cheese is melted with light golden spots. The chicken should be cooked through.

Rest and garnish: Let the casserole rest 5–10 minutes to set. Garnish with chopped cilantro and a squeeze of lime if you like.

Serve: Spoon into bowls. Great with a side of cauliflower rice, a crisp salad, or sliced avocado.