Place the chicken thighs, chopped orange bell pepper, seeded and chopped tomato, and undrained green chiles in your Instant Pot cooking container. Pour the chicken broth and sugar-free tomato sauce over the top. Sprinkle with the chili powder, ground cumin, chipotle powder, smoked paprika, and garlic powder. Season generously with salt and black pepper to taste, and give everything a good stir to combine. The chicken should be mostly submerged in the liquid.

Secure the lid on the Instant Pot and lock it into place. Flip the pressure valve to the “Sealing” position. Select the “Manual” setting (or “Pressure Cook” on newer models) on high pressure. Adjust the cook time to 10 minutes. The Instant Pot will take about 10 minutes to come to pressure, then the 10-minute cook time will begin.

When the cook time is complete, allow the pressure to release naturally for 10 minutes. This helps the chicken stay tender and juicy. After 10 minutes, carefully flip the valve to “Venting” to release any remaining steam. Wait until the float valve drops before opening the lid.

Remove the lid carefully (watch out for steam!). Using tongs, carefully transfer the chicken thighs from the Instant Pot to a plate or cutting board. Shred the chicken with two forks. It should pull apart easily. Return the shredded chicken to the pot and stir to combine with the soup.

Add the shredded Mexican cheese to the soup a little at a time, stirring constantly to prevent clumping. The residual heat will melt the cheese beautifully, creating a creamy, rich soup. Stir in the chopped fresh cilantro.

Ladle the hot soup into individual serving bowls. Top each bowl with fresh cilantro, additional shredded Mexican cheese, and chunked avocado. Serve immediately with lime wedges for squeezing. Add sour cream, sliced jalapeños, or tortilla chips if desired. Enjoy!