Pat the chicken strips completely dry with paper towels, then place them in a bowl. Toss with chili powder, cumin, smoked paprika, garlic powder, onion powder, and a generous pinch of salt. I always let this sit for three minutes while slicing peppers because the spices need time to cling to the chicken instead of falling off during cooking. This is where elegant chicken fajitas earn their sophistication—the seasoning becomes part of the protein, not a dusty coating.
Heat two tablespoons of olive oil in a large skillet over high heat for one minute until it shimmers actively. The oil should move freely across the pan, which means it's ready for the protein. Lower heat means you'll steam instead of sear, so I keep checking that the pan stays genuinely hot throughout.
Add the seasoned chicken strips in a single layer without stirring for four minutes. I know this feels long—and I used to break this rule constantly—but the bottom develops a golden crust in that time. Stir once, then cook another three to four minutes until the chicken reaches 165°F at the thickest point. Resist the urge to poke and move everything around because constant stirring prevents browning.
Transfer the cooked chicken to a plate and set aside without covering it. Pour off half the oil remaining in the pan, leaving the browned bits on the bottom. Those crusty bits contain the flavor that makes this beautiful one pan chicken fajitas recipe actually taste expensive.
Add the sliced peppers and onion directly to the pan in an even layer, then cook for five minutes without stirring. The vegetables need contact with the hot surface to develop color and slight char. After five minutes, stir and cook another three to four minutes until they're soft enough to pierce with a fork but still hold their shape.
Return the chicken to the pan with the vegetables, squeeze lime juice over everything, and toss gently to combine. Taste one bite and adjust salt as needed because everyone's palate varies. The lime should brighten the flavors noticeably—if it doesn't, you needed more. Cook for one more minute just to warm the chicken through.
Remove from heat and scatter fresh cilantro across the top right before serving. The residual heat releases the cilantro's essential oils, which creates an aroma that makes people ask questions.