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In an oven-safe pan or skillet, heat the olive oil over medium heat.
Add the diced onion and bell pepper, and sauté until they become soft and translucent, which should take about 5 minutes.
Stir in the shredded chicken, 2 ½ cups of enchilada sauce, and taco seasoning. Let it simmer for about 5 minutes to blend the flavors.
Gently fold in the tortilla strips until they are well mixed with the other ingredients.
Continue cooking for another 5 minutes to allow the tortilla strips to soften and absorb the flavors.
Pour the remaining ½ cup of enchilada sauce over the top, sprinkle with shredded cheese, and broil for 5 minutes until the cheese is melted and bubbly.
Garnish with chopped cilantro and serve immediately with sour cream and guacamole.