Heat olive oil in a large pot over medium-high heat. Add diced onion and cook for 3-4 minutes until softened. Stir in minced garlic and cook for another 30 seconds until fragrant, watching carefully so it doesn't burn.

Sprinkle chili powder, cumin, and smoked paprika over the onion mixture. Stir constantly for 1 minute to bloom the spices and release their aromatic oils. This step is crucial—it prevents the spices from tasting raw in the final dish.

Add chicken breasts directly to the pot along with chicken broth and diced tomatoes. Bring to a boil, then reduce heat and simmer for 12-14 minutes until chicken is cooked through. The chicken should reach an internal temperature of 165°F when measured with a meat thermometer.

Remove the cooked chicken to a cutting board and let it rest for 2 minutes. Shred the chicken into bite-sized pieces using two forks, then return it to the chicken tortilla soup recipe pot. This keeps the soup hearty and ensures even distribution of tender chicken throughout.

Stir in diced bell peppers, black beans, and corn. Simmer for 5-7 minutes until peppers are tender but still slightly crisp. The soup should be fragrant and the vegetables should soften just enough to release their flavors into the broth.

Taste and adjust seasonings with salt, pepper, and a squeeze of fresh lime juice. Add more lime juice if you want brightness, or additional chili powder if you prefer extra heat. This step makes the difference between good soup and unforgettable cozy bowls.

Ladle into bowls and top with crispy tortilla strips, fresh cilantro, additional lime wedges, diced avocado, or a dollop of sour cream. Serve immediately while the broth is hot and the tortilla strips maintain their crunch.