Sear the Chicken:
In a large skillet or pot, heat olive oil over medium-high heat. Add cubed chicken and season with salt and pepper. Cook until golden, about 4–5 minutes, then remove and set aside.
Cook the Aromatics:
In the same pan, add onion and garlic. Sauté for 2–3 minutes until fragrant.
Add Rice and Spices:
Stir in uncooked rice, chili powder, and smoked paprika. Toast for 1 minute to build flavor.
Add Liquids:
Pour in chicken broth and diced tomatoes with green chilies. Stir, then return the cooked chicken to the pot.
Simmer:
Cover and cook over low heat for 15–18 minutes until rice is tender and liquid is absorbed.
Add Cheese and Queso:
Stir in shredded cheddar, queso dip, and milk (if desired). Mix until the sauce becomes creamy and coats everything evenly.
Serve and Garnish:
Spoon into bowls and top with fresh cilantro, jalapeños, and a squeeze of lime. Serve warm and enjoy!