Set aside ¼ cup of the diced green chiles, 1/4 cup of the red bell pepper, and 1/4 cup of the yellow bell pepper. Preheat your oven to 350°F
Blend together the ¼ white onion, remaining diced green chiles, and ¼ cup of water. You could use ¼ of juice from the can of green chiles instead of water if you like.
Heat 1 teaspoon of the olive oil in a skillet over medium heat. Add the spiralized zucchini and saute until the zoodles start to soften. Transfer to a 9x12 casserole dish.
Wipe the skillet clean and return to the heat. Add the remaining teaspoon of olive oil to the pan and let it become hot. Then add the diced yellow and red bell pepper, but don't forget to save ¼ cup of each color for later. Cook until the vegetables start to soften before adding the teaspoon of garlic powder. Then add the blended green chiles to the pan.
Once the sauce starts to bubble, stir in the cup of heavy whipping cream. The sauce may seem thinner and will look a lot lighter.
Stir in 2 cups of the pepper jack cheese.
Cube up the softened cream cheese and add to the sauce. Mix very well, you may even want to use a whisk. If your cream cheese is not soft enough then you can place it in a separate bowl. Mix it up with large spoons of sauce from the pan until it's fully incorporated and ready to stir into the full batch.
Season the sauce with salt and pepper.
Layer the shredded chicken over the zoodles in your casserole dish.
Pour the green chile cream sauce over your casserole. I think it's helpful to poke at the chicken and veggies here and there just to make sure that the sauce isn't just sitting on the top.
Sprinkle the remaining ¼ cup red bell pepper, ¼ cup yellow bell pepper, and ¼ cup green chiles over the top of the casserole.
Sprinkle on the remaining shredded pepper jack cheese, and the ¼ cup of sharp cheddar cheese.
Bake the casserole at 350°F for 30 minutes, or until the cheese melts and the casserole is bubbling.
Allow to cool for 10 minutes before serving. I love to add a sprinkling of chopped cilantro, and Valentina hot sauce.