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Heat olive oil in a Dutch oven or soup pot over medium heat. Sauté the garlic, onion and pepper together; cook for 5-6 minutes until softened.
Place the onion mixture in a blender. Add cilantro and 1 cup of chicken broth. Blend until smooth. Set aside.
In the same pot you cooked the onions in, add a little more oil, potatoes and remaining chicken stock. Bring to a boil until potatoes are cooked through (about 15 minutes). Add the shredded chicken.
Add the cilantro and onion mixture to the potato and chicken mixture. Stir until well combined, and heat through. Add the lime juice at the very end. Garnish with avocado, cheese and sour cream. Serve immediately.