Preheat and prep. Heat your oven to 400°F (200°C).
Lightly grease a 9x13-inch baking dish.
Season the chicken. In a bowl, toss the chicken pieces with half the olive oil, fajita seasoning, smoked paprika, cumin, chili powder, salt, and pepper. If using cooked chicken, toss gently to coat.
Sauté the veggies. In a large skillet over medium-high heat, warm the remaining olive oil. Add sliced onions and peppers.
Cook, stirring, until they soften and get a few charred edges, about 6–8 minutes. Stir in the garlic for the last 30 seconds.
Build the sauce. In a small bowl, whisk together salsa, sour cream (or Greek yogurt), and chicken broth until smooth. Adjust salt to taste.
Assemble the casserole. Add the cooked veggies to the baking dish.
Layer the seasoned chicken on top. If using rice, cauliflower rice, beans, or corn, scatter them evenly. Pour the sauce over everything and give it a gentle stir to distribute.
Add the cheese. Sprinkle half the cheese over the mixture.
Reserve the rest for the end so it stays gooey and melty.
Bake. Cover with foil and bake for 20 minutes. Remove the foil, sprinkle on the remaining cheese, and bake another 8–12 minutes, until the chicken is cooked through (165°F/74°C) and the cheese is bubbling.
Finish and serve. Let it rest for 5 minutes. Squeeze fresh lime over the top and garnish with chopped cilantro.
Serve with warm tortillas, over rice, or with a simple salad.