Cheesy, smoky, and loaded with bacon, this keto chicken casserole comes together in 15 minutes flat. No rice, no tortillas, just real food that happens to be low carb.
I originally shared this recipe back in August 2019, and today I’m updating it with new information and extra tips!
Keto Chicken Casserole with Hatch Chiles and Bacon
Life with little ones doesn’t leave much room for dinners that take an hour to get on the table. Some nights you’re lucky to keep dinner off the floor at all.
This keto chicken casserole solves that problem without giving up flavor. Fifteen minutes of prep, twenty in the oven, and you’ve got a rich, cheesy dinner built from real ingredients: chicken, bacon, cream cheese, and fire roasted hatch chiles. No starch, no shortcuts on taste.
I built this recipe years ago during a season when dinner prep had to be fast and completely foolproof. It’s stayed in our regular rotation ever since, hatch chiles or not, because it’s just genuinely good food.
What Makes This Chicken Casserole Keto
This casserole is keto by design, not by substitution. There’s no rice, no tortillas, and no flour-thickened sauce pretending to be something it’s not. The sauce is just cream cheese, chicken, and melted Monterey jack, so what you’re tasting is real fat and protein, not filler.
One serving comes in around 3g of carbs, 32g of fat, and 14g of protein, so it fits into a keto or low carb day without any recipe math. It’s also naturally gluten free, which is a nice bonus if that matters for your family too.
If you’re always on the hunt for keto dinners, my Keto Zucchini Lasagna is another one worth trying.
Hatch Chile Season
Hatch chile season is short. Real short. The fresh chiles show up in early August and they’re gone by late September, so if you want that smoky, fire roasted flavor, you’ve got about six weeks a year to catch it.
Here in Boise we’re lucky. A few local stores bring in roasting wheels for a week or two each summer and fire roast the peppers right out front. It’s genuinely fun to watch, and the whole parking lot smells incredible.
If you catch it, buy more than you think you need. Roast, freeze, and you’ll have that flavor on hand for the rest of the year. If you miss the window entirely, canned hatch chiles work fine in this recipe too, though fresh roasted ones will give you a smokier, more complex flavor. See the recipe notes below.
Are Hatch Peppers Hot?
The heat of hatch peppers depends entirely on what you buy. They come in mild, medium, and hot, and the difference matters.
Mild is what I use for our family meals. It’s about on par with Taco Bell’s mild sauce, so it’s an easy yes for kids.
Medium is a real step up. Most people who don’t eat much spicy food would call it genuinely hot, though it’s not overwhelming.
Then there’s hot, which lives up to the name. It’ll wake you up.
As with any pepper, the seeds and membrane carry most of the heat. Any part of the chile that’s touched them will be spicier than the rest.
How to Make This Keto Chicken Casserole
This one comes together fast. Slice the chicken breasts horizontally so you’ve got thin, even pieces that cook quickly and evenly. Lay them in the baking dish. (9×12 or 9×13 both work.)
Mix softened cream cheese with garlic powder, salt, and pepper, then stir in the chopped hatch chiles. Spread that mixture over the chicken. Scatter crispy bacon on top, then a generous layer of Monterey jack.
Bake at 375°F until the chicken hits 160°F internally and the cheese is bubbling and starting to brown, about 20 to 25 minutes. That’s it. (Using an instant read digital thermomater is THE way to make sure food is cooked safely without being overdone. It will make you a great cook! I have used the ThermoWorks brand ones for over a decade and love them.)
Full ingredient amounts and the complete step-by-step are in the recipe card below.
Storage, Meal Prep & Reheating
This casserole holds up well, which makes it a solid pick if you like to cook ahead. Leftovers keep in the fridge for up to 4 days in an airtight container.
To reheat, my favorite method is the air fryer. A few minutes at 350°F crisps the cheese and bacon back up instead of leaving them soft, and it’s faster than turning on the full oven. An oven or toaster oven works nearly as well at 350°F for about 15 minutes. If you’re in a hurry, the microwave is fine too, just expect a softer texture.
You can also assemble the whole dish ahead of time, cover it, and refrigerate it unbaked for up to a day before you need it. Pull it out, let it sit at room temp while the oven preheats, then bake as directed, adding a few extra minutes since it’s starting cold.
This isn’t a great candidate for freezing before baking, since cream cheese sauces can separate a bit when thawed. If you do want to freeze it, I’d freeze it after baking instead, in individual portions, and reheat straight from frozen in the oven or air fryer.
Hatch Chile FAQ
Do you have to peel hatch peppers?
No, I don’t. I pull out the seeds and membrane, cook it up, and don’t worry about the rest. If a little blistered skin falls off while I’m chopping, that’s fine too. Plenty of people do prefer to peel theirs, and that’s a completely reasonable way to go. It’s really just a personal preference thing, so do whatever works for you.
Can you freeze hatch peppers?
Yes, and it’s worth doing if you catch them in season. Lay roasted peppers on a lined baking sheet, freeze them flat, then transfer to a freezer bag. Or chop them first and freeze in one cup portions so they’re ready to grab for a recipe like this one.
What are hatch chiles used for?
Pretty much anything. They’re a Southwest staple that pairs naturally with chicken, pork, eggs, and cheese. If a dish would be good with a bell pepper in it, it’s going to be even better with a hatch chile. My Chile Relleno Breakfast Casserole is a great example if you want to see them shine in an egg dish too.
More Easy Chicken Dinners
- Crispy Baked Chicken Thighs In Gravy
- 15 Minute Honey Garlic Chicken
- Huli Huli Chicken Without a Grill
- White Chicken and Rice Enchiladas
Keto Chicken Casserole with Hatch Chiles and Bacon
Ingredients
- 3 strips thick cut bacon
- 2 boneless skinless breasts
- 1/2 cup fire roasted hatch chili seeded and chopped (see note)
- 8 oz cream cheese softened
- ½ teaspoon garlic powder
- ¼ teaspoon salt
- ½ teaspoon coarsely ground black pepper
- 1 1/2 cups Monterey jack cheese shredded
Instructions
- Preheat the oven to 375 F.
- Dice the bacon and crisp it up in a frying pan over medium-high heat. Drain the pieces on a paper towel and set aside.
- Slice the chicken in half. Use the flat of your hand to hold the breast steady on the cutting board and start at the thick end. Slice horizontally to create two slices that are about even thickness. Lay the four pieces of chicken in single layer in a 9”x12” casserole dish.
- Remove the stems from the chilis and slit them up one side so each pepper lays flat. Use a knife to scrape out the seeds and membranes and discard them. Dice enough peppers to make ½ cup.
- Thoroughly mix the cream cheese, garlic powder, salt and pepper. Stir in the chopped chilies. Spread the mixture evenly over the chicken. Scatter the bacon on top. Scatter the Monterey jack cheese on top of that.
- Bake at 375 F until the chicken has reached 160F internally, and the cheese is browning on top. 20-25 minutes.
- Serve hot with cauliflower rice, a simple green salad, or roasted low-carb veggies and fresh tomato slices.
Helpful Recipe Notes
Your Rating Matters
When you leave a comment or star rating, it means more than you might think. It helps me understand what you’re enjoying, builds trust for other readers, and supports real, tested cooking content. If you have a moment, I’d truly appreciate you sharing your experience. – Mirlandra
Nutrition Estimate
A Note on Nutrition
Nutritional info is an imperfect estimate. Please take it with a grain of salt.
Margaret says
Mirlanda, I am from NM, 63 years old, and have eaten green chile all my life and cooked with green chile a large part of my life. I have NEVER not peeled my chiles after roasting. I know of no one who does not peel their chile. I appreciate you are busy, etc. But with just the few chiles you are roasting, it will only take minutes to remove the skin. The burnt skin will not be appetizing. Otherwise your recipe is fine.
Mirlandra says
Hi Margaret, I’m sorry you disagree with the recipe method. I know people from NM who do it differently so we might have to just say to each their own here 🙂 I’m sorry if you feel I trod on something you hold dear.