Queso Smothered Fajita Casserole

So here’s the thing about this casserole — it’s got everything you love about fajitas, but you don’t have to stand at the stove babysitting a skillet while your family yells that they’re hungry. And the best part? It gets drowned in the creamiest, dreamiest queso you’ve ever tasted. (And yes, we’re making that queso from scratch — but don’t panic. It’s stupid-easy.)

I made this for the first time when we had friends coming over last minute. You know that moment when you’ve got chicken and maybe one bell pepper, and somehow you need to feed six adults like you had a plan? That’s where this dish was born. I tossed everything in a pan, held my breath, and hoped for the best.

Let’s just say the pan came out empty, and everyone wanted the recipe.

Why You’ll Love This Casserole (Other Than the Obvious Cheese Situation)

  • One dish. Okay, plus a pot for the queso, but still — minimal cleanup.

  • Bakes hands-off in the oven while you clean the kitchen, throw on lipstick, or scroll your phone in peace.

  • That queso. It’s rich, creamy, and the green chiles give it just enough kick.

  • Leftovers reheat like a dream — if you have any.

  • Feeds a crowd or just you with lunch for the week.

What You’ll Need

Let’s walk through it — no weird ingredients, just real food with big flavor.

For the casserole:

  • ¼ cup unsalted butter, divided – For sautéing the goods.

  • 1 lb chicken breast, cubed – Boneless, skinless, and friendly to whatever’s in your freezer.

  • 1 yellow onion, sliced (2-inch pieces) – Sweet and soft when cooked down.

  • 1 red bell pepper + 1 green bell pepper, sliced – Color + crunch.

  • 2 cups white minute rice – Yup, the quick kind. Trust the process.

  • 2 cups chicken stock – Brings moisture and flavor.

  • 1 oz taco seasoning – Use a packet or your own mix. Either works.

  • 1 (15.5 oz) jar salsa – Chunky or smooth, mild or spicy — your call.

  • 1/3 cup chopped fresh cilantro – Optional, but it adds a pop of brightness.

  • Salt & pepper – To taste, always.

For the queso:

  • 1 (12 oz) can evaporated milk – Makes it creamy without being heavy.

  • 2 cups grated Mexican cheese blend – Pre-shredded is fine. Life’s short.

  • 10 slices American cheese – Yes, slices. Melty and smooth. Trust me.

  • 1 (4 oz) can diced green chiles – Brings the subtle heat.

Let’s Get Cooking (It’s Easier Than It Looks)

Step 1: Preheat and prep

Set your oven to 375ºF and grease a 9×13 baking dish. This is your casserole’s happy place.

Step 2: Brown the chicken

Melt 2 tablespoons of butter in a skillet over medium-high heat. Add the cubed chicken, season with salt and pepper, and cook just until it’s golden on a couple sides — about 2–3 minutes. No need to cook it through; the oven will handle that. Dump the chicken into your baking dish.

Step 3: Sauté the veggies

Add the rest of the butter to the skillet. Toss in your onions and peppers and sauté for 5–6 minutes until they start to soften and get a little color. Not mushy, not raw. Just right.

Turn off the heat and add those beautiful veggies to your casserole dish with the chicken.

Step 4: Add the rice and liquid

Sprinkle the minute rice over everything. In a measuring cup, whisk together the chicken stock and taco seasoning. Pour it over the rice and veggies, then add the salsa and give it all a gentle stir. Don’t get aggressive — just enough to mingle the ingredients.

Step 5: Cover and bake

Tightly cover the dish with foil and bake for 45 minutes on the middle rack. Let it do its thing.

Meanwhile… Let’s Talk Queso

This queso is no joke. It’s rich, velvety, and completely smother-worthy.

In a medium saucepan over medium heat, combine:

  • Evaporated milk

  • Mexican cheese blend

  • American cheese slices

  • Diced green chiles

Let it cook 10–12 minutes, stirring now and then until it’s smooth and melty and you’re wondering if you have to wait for the casserole. You don’t — sneak a spoonful. I always do.

Once it’s smooth, keep it warm on low heat until you’re ready to pour it over your casserole like a queso queen.

Almost There — Finish and Fluff

Take the casserole out of the oven, remove the foil, and fluff the rice with a fork. You’ll see how perfectly cooked everything is — no crunchy rice here.

Sprinkle with fresh cilantro if you like, and now… the moment we’ve all been waiting for: smother it in queso. Pour it right over the top, or serve it on the side if you want to let folks add their own.

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