Start by slicing the bell peppers into thin strips and the onion into half-moons. Set aside. Pat the chicken thighs dry and slice into thin strips. Mix together the spices: chili powder, cumin, smoked paprika, salt, and pepper.
Heat a large skillet over medium-high heat until shimmering. Add a tablespoon of oil and swirl to coat the pan. Once hot, add the chicken strips, spreading them out in a single layer. Let them sear undisturbed for 3-4 minutes until golden on one side.
Flip the chicken with tongs and cook for another 2-3 minutes until cooked through and browned. Remove the chicken from the skillet and set aside on a plate.
Add a little more oil if needed, then toss in the sliced peppers and onions. Cook, stirring occasionally, for about 8-10 minutes. You'll see the peppers blister and darken at the edges, releasing a smoky aroma, while the onions soften and turn jammy.
Once the vegetables are tender and slightly charred, return the cooked chicken to the skillet. Toss everything together to combine and let cook for another minute so the flavors meld. Squeeze fresh lime juice over the mixture for brightness and stir well.
Taste the mixture and adjust seasoning with more salt, pepper, or lime juice if needed. Turn off the heat and let the skillet rest for a minute. Serve hot, garnished with fresh cilantro or sliced jalapeƱos if desired, wrapped in warm tortillas or over rice.