Preheat your oven to 375°F (190°C).
In a small bowl, mix together the chili powder, paprika, cumin, salt, and pepper. Rub this spice mixture all over the chicken breasts.
Heat olive oil in a skillet over medium-high heat. Add the chicken and sear on both sides until golden, about 3-4 minutes per side.
Transfer the chicken to a baking dish and bake in the preheated oven for 20-25 minutes, or until the chicken is cooked through.
While the chicken is baking, prepare the cheese sauce. In a saucepan over medium heat, melt the butter. Whisk in the flour until smooth and cook for 1-2 minutes.
Gradually add the milk, whisking continuously, until the sauce thickens.
Add the shredded cheese and chopped green chilies to the sauce. Stir until the cheese has melted and the sauce is smooth. Season with salt and pepper to taste.
Once the chicken is cooked, serve it topped with the warm cheese sauce.
Garnish with fresh cilantro and sliced jalapeños before serving.
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