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Preheat the oven to 400 degrees F.
Put the chips in a food processor and pulse until they are finely ground, set aside.
Set up a breading station with 3 shallow dishes: Stir together the flour, chili powder and ½ teaspoon salt in the first dish. Beat the eggs in the second dish and add the ground tortilla chips to the third dish.
Coat a chicken in the flour. Dip in the egg, letting any excess drip off and then into the tortilla chips. Transfer to a plate and continue with the rest of the chicken.
Heat ½ cup of the oil in a large skillet over medium high heat. Fry the chicken until the coating is golden brown on both sides, 3 to 4 minutes per side. Remove to a paper towel-lined plate.
Evenly spread ½ cup salsa on the bottom of a 9x13 inch baking dish. Arrange the chicken in a single layer on top of the salsa. Sprinkle with the diced green chilies. Add some salsa on top of each piece of chicken. Shingle the pepper jack cheese evenly over the chicken. Sprinkle with the Cotija cheese.
Bake until the cheese is bubbling and golden brown and the chicken is cooked. About 25 to 30 minutes.
Sprinkle with the jalapeños and cilantro.
YUM!