Preheat your oven to 375°F (190°C) and grease a baking dish lightly with oil

Heat olive oil in a skillet over medium heat

Add diced onion and bell peppers, sauté for 3–4 minutes until softened

Add minced garlic and cook for another 30 seconds until fragrant

Add shredded chicken into the skillet and stir to combine with vegetables

Sprinkle chili powder, cumin, paprika, garlic powder, salt, and pepper over the mixture

Pour in enchilada sauce and mix until everything is evenly coated

Let the mixture simmer for 3–5 minutes to enhance flavors

In a separate bowl, combine softened cream cheese and sour cream

Whisk until smooth and creamy with no lumps

Add half of the shredded cheddar and mozzarella cheese into the cream mixture

Fold the creamy mixture into the chicken mixture until fully combined

Stir in green chiles for added flavor and mild heat

Transfer the mixture evenly into the prepared baking dish

Spread it out evenly with a spatula

Sprinkle remaining cheddar and mozzarella cheese over the top

Bake for 25–30 minutes until the cheese is melted and bubbly

Turn on broil for 2–3 minutes to get a golden top

Remove from oven and let rest for 5–10 minutes before serving

Garnish with fresh cilantro if desired

Slice into portions and serve warm