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Season chicken thighs with chili powder, Italian seasoning, salt, and pepper.
Heat the same (now empty) cast-iron skillet over medium heat for 2 minutes. This allows the cast-iron skillet to heat through.
Add 2 tablespoons of olive oil. Add chicken thighs. Cook the chicken on medium heat for 5 minutes, without moving it. This allows the chicken to sear.
Flip the chicken thighs over, reduce heat to low-medium, and cook for about 5 more minutes or longer until it's cooked through. Remove from heat.
Remove chicken from skillet.
To the same skillet, on medium heat, add sliced peaches and slightly cook them, without overcooking, - about 5 minutes.
At the very end, add honey, lemon juice, and butter. Stir
Add back the cooked chicken nestled in between the peaches. Reheat briefly. Remove from heat.
Top with fresh thyme.