Heat the olive oil in a large pot or Dutch oven over medium heat. Add the diced onion and sauté until soft and translucent, about 5 minutes.
Stir in the minced garlic and cook for an additional 1 minute, until fragrant.
Add the diced chicken to the pot and cook until browned on all sides, about 5-7 minutes.
Pour in the chicken broth and add the can of diced tomatoes with green chilies. Stir well to combine.
Bring the mixture to a boil, then reduce the heat to a simmer. Cook for about 10 minutes.
In a separate bowl, whisk together the softened cream cheese until smooth. Gradually add some of the hot soup broth to the cream cheese, mixing until combined and creamy.
Stir the cream cheese mixture back into the soup, followed by the shredded cheddar cheese and diced jalapeños.
Add the ground cumin, smoked paprika, and season with salt and pepper to taste. Allow the soup to simmer for another 5-10 minutes, or until everything is heated through and the flavors meld together.
Serve hot in bowls, garnished with fresh cilantro if desired.