This baked fajita chicken is an easy oven-baked dinner made with tender chicken breasts stuffed with a creamy, cheesy filling and seasoned with classic fajita spices.
Heat 1 tablespoon olive oil in a large skillet over medium-high heat. Add the sliced onions, bell peppers, salt, and garlic powder and cook for 3–4 minutes, until crisp-tender. Remove from heat.
In a bowl, mix the cream cheese with half of the taco seasoning, then stir in the cheddar cheese until combined.
Cut a pocket into each chicken breast by slicing horizontally, being careful not to cut all the way through. Fill each chicken breast with the cheese mixture, then top with the cooked onions and peppers. Press the chicken closed.
Sprinkle the chicken with the remaining taco seasoning. Drizzle the remaining olive oil into a baking dish and arrange the chicken in a single layer.
Bake for 30–45 minutes, or until the chicken reaches an internal temperature of 165°F.