Begin by cutting the chicken breasts into thin strips. Place the chicken in a mixing bowl.
Add 2 tablespoons of olive oil, chili powder, cumin, garlic powder, onion powder, smoked paprika, salt, and pepper to the chicken. Mix well to coat all the chicken pieces evenly. Let it marinate for about 10 minutes.
While the chicken is marinating, heat the remaining tablespoon of olive oil in a large skillet over medium-high heat.
Add the sliced onion and bell peppers to the skillet. Sauté them for about 4-5 minutes, or until they are softened and slightly charred. Remove them from the skillet and set aside.
In the same skillet, add the marinated chicken strips. Cook for about 6-8 minutes, stirring occasionally, until the chicken is cooked through and no longer pink.
Return the cooked vegetables to the skillet with the chicken. Squeeze the lime juice over the mixture and stir to combine, cooking for an additional minute.
Warm the tortillas in a pan or microwave until soft. Serve the chicken and vegetable mixture in tortillas, garnished with fresh cilantro if desired.
Optionally, serve with sliced avocado and sour cream on the side.