In a large nonstick skillet, fry bacon until crispy. Put on a plate lined with paper towels to drain.
While the bacon is cooking, cut the tops off of the peppers, cut them lengthwise, scoop out the seeds and membranes, and slice into thin crescents. Cut the chicken into bite-sized pieces. Set both aside.
When the bacon is finished, keep the bacon grease in the skillet. Add the chicken and peppers, and sprinkle with the garlic and onion powders. Cook, stirring occasionally, until the chicken is golden brown and the peppers are soft.
Add the chicken broth and bring to a low boil. Cut the cream cheese into cubes and add them to the skillet. Stir constantly until the cream cheese is melted and there are no longer any clumps. Keep simmering until the sauce thickens, then add the cheddar cheese.
Crumble the bacon over the skillet and serve.
Macros for one serving: 429 calories, 1 gram net carbs, 34 grams protein, 32 grams fat.
Keyword chicken, easy, keto, low carb, main dish, make ahead, spicy, weeknight