Saute the aromatics — Heat olive oil in a large heavy-bottom pot over medium heat. Add the diced onion and sauté for 5–7 minutes until it becomes soft and translucent, releasing a sweet, mellow fragrance. Add the garlic and cook another 1–2 minutes until it smells aromatic and slightly toasted.
Build the flavorful broth — Pour in the chicken broth and heavy cream. Add the drained green chiles, cumin, oregano, smoked paprika, cayenne (if using), salt and pepper. Bring the mixture up to a gentle simmer.
Add zucchini — Stir in the zucchini slices, then reduce heat to medium-low. Let it simmer uncovered for about 15 minutes, until the zucchini is tender but still holds its shape and the broth has reduced slightly. You’ll notice the broth thickening and aromas deepening.
Melt in the cheeses — Lower the heat to low. Add the cream cheese chunks a few pieces at a time, stirring until each batch melts smoothly into the broth. Then stir in the shredded cheese until the soup becomes velvety and fully creamy. Keep the heat gentle — avoid boiling to keep the texture silky.
Add shredded chicken — Stir in the cooked shredded chicken. Let it heat through for 4–5 minutes so the flavors meld and the chicken warms. Adjust seasoning with a pinch more salt or pepper, if needed.
Serve warm — Ladle into bowls and garnish with your choice of toppings: fresh cilantro, avocado slices, a squeeze of lime, extra cheese, or jalapeño slices for a spicy kick. The contrast of creamy chili with bright, fresh garnishes is delightful.