Step 1: Prepare the Flavorful Filling
Preheat your oven to 375°F (190°C). In a large skillet over medium heat, combine the shredded chicken, taco seasoning, water, and the undrained green chiles. Stir and cook for 3-4 minutes until the liquid is absorbed and the chicken is thoroughly coated in the seasoning. Remove from heat. If using, stir in the softened cream cheese until melted and combined. Then, stir in the 1 ½ cups of shredded cheese for the filling. Set aside.

Step 2: The Critical Tortilla Prep (Do Not Skip!)
This step prevents the corn tortillas from cracking when you roll them. Heat the 1 tbsp of vegetable oil in a small skillet over medium heat. Using tongs, quickly fry each tortilla for about 5-10 seconds per side, just until softened and pliable. They should not be crispy. Alternatively, you can wrap a stack of tortillas in damp paper towels and microwave for 30-45 seconds until warm and soft. Place the softened tortillas on a plate and cover with a towel to keep them warm and flexible.

Step 3: Assemble the Enchiladas
Spread ½ cup of the enchilada sauce evenly over the bottom of a 9×13 inch baking dish. Take one softened tortilla and place a generous ¼ cup of the chicken and cheese filling in a line down the center. Roll the tortilla tightly around the filling and place it seam-side down in the baking dish. Repeat with the remaining tortillas and filling, packing them snugly side-by-side in the dish.

Step 4: Sauce and Cheese the Enchiladas
Pour the remaining enchilada sauce evenly over the top of the rolled enchiladas, making sure to cover the ends to prevent drying out. Use a spoon to spread the sauce into any gaps. Sprinkle the 2 cups of shredded cheese evenly over the sauce, covering everything.

Step 5: Bake to Bubbly, Golden Perfection
Cover the baking dish with aluminum foil. Bake for 20 minutes. Then, remove the foil and bake for an additional 10-15 minutes, or until the cheese is completely melted, bubbly, and starting to brown in spots, and the sauce is bubbling around the edges.

Step 6: Rest, Garnish, and Serve
Remove the enchiladas from the oven and let them rest for 10 minutes. This is essential—it allows the filling to set, making them much easier to serve without falling apart. Garnish the entire dish with a sprinkle of fresh cilantro. Serve directly from the dish, providing a vibrant array of garnishes on the side so everyone can customize their plate with sour cream, diced onions, tomatoes, jalapeños, and a squeeze of fresh lime.