Preheat oven to 425°F.

Place a large heavy-duty skillet over medium-high heat and add olive oil. When hot, add diced onions and sauté for 2-3 minutes until translucent.

Add green chilies, chili powder, cumin, paprika, garlic powder, salt, and black pepper to the skillet. Stir to combine spices with onions.

Pour in red enchilada sauce and stir to incorporate spices. Add shredded chicken and stir evenly to coat.

Cook sauce and chicken for 3-4 minutes, just until sauce starts to simmer.

Turn off heat. Gently fold in tortilla strips until evenly coated.

Top mixture with shredded cheese. Bake in oven for 10-12 minutes until cheese melts and bubbly.

Garnish with cilantro and avocado slices. Serve warm.