Wash and slice the bell peppers and onions into long, thin strips, about 1/2 inch wide, removing the seeds. Next, use a sharp knife or kitchen shears to slice the chicken breasts into 1/2 inch wide strips.
Toss the peppers, onions, and chicken with the fajita seasoning and oil until fully combined. The pieces should be coated evenly.
Pour the chicken and vegetable mixture into the Instant Pot. Pour in the water, then secure the lid to close the Instant Pot. Set it High Pressure for 3 minutes. It will take about 10 minutes to get up to pressure.Carefully turn or press the steam release valve to allow for Quick Pressure Release (QPR). Once all the steam has released, open the lid.
Season to taste with salt and pepper, and spoon the cooked fajita filling into tortillas or on salad. Sprinkle with cilantro and a squeeze of lime.
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Notes
To Make Ahead:
Prep this recipe up to 18 hours in advance! Follow steps 1-2, then cover the bowl with the chicken and vegetable mixture with plastic wrap. Store in the refrigerator for up to 18 hours, then continue following steps 3-4 to cook.
To Freeze for Later:
Follow the instructions through step 2. Add the chicken and vegetable mixture to a large zip top bag. Squeeze as much air out of the bag as possible, and freeze laying flat for up to 3 months, per USDA. Allow it to defrost on a plate in the refrigerator overnight, then follow steps 3-4 to cook.
To Store Leftovers:
Allow any leftovers to cool. Transfer to an airtight container or zip top bag, and store in the refrigerator for 3-4 days, per USDA.