Dice the yellow onion into 1/4-inch pieces and mince the garlic cloves. Having everything prepped and ready will make the cooking process smooth and prevent overcooking of aromatics. This is especially important for garlic, which can burn quickly once the heat is on.

Heat the olive oil in a large pot over medium heat. Add the diced onion and cook for 5-7 minutes, stirring occasionally, until softened and translucent. Add the minced garlic and cook for another 1-2 minutes until fragrant. This slow sautéing develops a sweet, rich base for the chili and prevents harsh raw flavors from dominating the final dish.

Pour in the chicken broth and bring to a boil, then reduce heat to a gentle simmer. Add the green chiles, cumin, oregano, cayenne pepper, sea salt, and black pepper. Stir well to combine all the spices evenly. Simmer for 40 minutes to allow the flavors to meld and deepen—this longer simmering is crucial for building complexity in the broth and letting the spices fully develop. I find that this extended cooking time makes a noticeable difference in the depth of flavor compared to rushing it.

Reduce the heat to low and cut the softened cream cheese into small chunks for faster melting. Stir the cream cheese into the simmering broth until completely melted and smooth. Add the heavy cream and Mexican blend cheese, stirring constantly until the cheese is fully melted and the mixture is creamy and homogeneous. Keep the heat low to prevent the dairy from breaking or curdling. I prefer to add the cheeses separately rather than all at once—it ensures they melt evenly without clumping.

Stir in the shredded chicken and simmer for 5 minutes to warm through and allow the chicken to absorb the flavors of the broth. Taste and adjust seasonings as needed—the chili should be creamy, flavorful, and well-balanced. Serve hot and enjoy!