Preheat and prep: Heat the oven to 400°F (200°C). Lightly grease a 9x13-inch casserole dish.
Pat chicken dry with paper towels.
Mix the fajita seasoning: In a small bowl, combine chili powder, cumin, smoked paprika, garlic powder, onion powder, oregano, cayenne, salt, and black pepper.
Season the chicken: Toss sliced chicken with half of the seasoning mix, 1 tablespoon olive oil, and lime zest. Set aside.
Sauté the veggies: Heat the remaining 1 tablespoon olive oil in a large skillet over medium-high. Add peppers and onions with a pinch of salt.
Cook 5–7 minutes, tossing occasionally, until softened with a little char. Transfer to the casserole dish.
Quick sear the chicken: In the same hot skillet, add the seasoned chicken in a single layer. Sear 2–3 minutes per side until just opaque on the outside (it will finish in the oven).
Scatter the chicken over the peppers and onions.
Make the creamy topping: In a bowl, whisk cream cheese and Greek yogurt until smooth. Stir in the remaining fajita seasoning and lime juice. Spread this mixture evenly over the chicken and veggies.
Add cheese and bake: Sprinkle shredded cheese over the top.
Bake 15–18 minutes, until bubbly and the chicken reaches an internal temperature of 165°F (74°C).
Finish and rest: Let the casserole rest 5–10 minutes. Top with chopped cilantro and sliced jalapeño if using. Taste and adjust salt or a squeeze of lime.
Portion for meal prep: Divide into 4–5 airtight containers.
Add avocado on the side, not on top, to keep it fresh.