Cook the Chicken
Heat 1 tablespoon of olive oil in a large pot or Dutch oven over medium heat.
Season the chicken thighs with salt and pepper, then add them to the pot. Cook for 5-6 minutes per side or until golden brown and cooked through. Remove the chicken and set aside.
Sauté the Vegetables
In the same pot, add the remaining olive oil. Sauté the diced onion, garlic, bell pepper, and jalapeño (if using) for 4-5 minutes, or until softened.
Add the Spices and Broth
Stir in the ground cumin, chili powder, smoked paprika, dried oregano, salt, and black pepper. Cook for 1-2 minutes to toast the spices and enhance their flavor.
Pour in the diced tomatoes (with their juices) and chicken broth. Stir to combine.
Simmer the Soup
Bring the soup to a boil, then reduce the heat to low. Let it simmer for 15-20 minutes to allow the flavors to meld together.
Shred the Chicken
While the soup simmers, shred the cooked chicken using two forks.
Combine and Serve
Add the shredded chicken back to the pot and stir to combine. Simmer for an additional 5 minutes.
Ladle the soup into bowls and top with shredded cheddar cheese, diced avocado, and fresh cilantro. Serve with lime wedges on the side for a bright, tangy finish.