Preheat oven to 425°F.
Heat olive oil in a large 12-inch heavy-duty skillet over medium-high heat.
Add diced sweet yellow onion and sauté for 2 to 3 minutes until tender and translucent.
Stir in mild diced green chilies, chili powder, ground cumin, smoked paprika, garlic powder, salt, and black pepper, mixing well with onions.
Pour in mild red enchilada sauce and stir to combine spices evenly into the sauce.
Add shredded rotisserie chicken and stir to coat all pieces with the sauce.
Cook mixture for 3 to 4 minutes until the sauce begins to simmer gently.
Turn off heat and gently fold in corn tortilla strips, ensuring they are fully coated and distributed.
Top the skillet mixture evenly with shredded cheddar-jack cheese.
Place the skillet in the preheated oven and bake for 10 to 12 minutes until cheese melts and sauce is bubbly.
Garnish with fresh cilantro and avocado slices before serving warm.