Step 1: Prepare the Spice Blend
In a small bowl, combine the chili powder, cumin, smoked paprika, garlic powder, onion powder, dried oregano, salt, and black pepper. Stir until everything is evenly mixed. This ensures the chicken gets coated evenly with all the wonderful flavors.

Step 2: Sauté the Aromatics (Optional but Recommended)
Set your Instant Pot to the “Sauté” function on normal heat. Once the display reads “Hot,” add the olive oil. Add the chopped yellow onion and cook, stirring occasionally, for 3-4 minutes until it begins to soften and become translucent. Add the minced garlic and cook for another minute until fragrant. Be careful not to burn the garlic. This step builds a crucial layer of flavor for the final sauce.

Step 3: Deglaze the Pot
Pour in the chicken broth and use a wooden spoon or spatula to scrape up any browned bits (fond) from the bottom of the pot. This is called deglazing, and it’s essential for two reasons: it incorporates all that delicious flavor into your sauce, and it helps prevent the dreaded “Burn” notice on your Instant Pot.

Step 4: Combine the Ingredients
Turn off the “Sauté” function. Add the prepared spice blend and the salsa to the broth in the pot. Stir everything together until the spices are well-dissolved into the liquid.

Step 5: Add the Chicken
Nestle the chicken breasts into the liquid in a single layer, if possible. Spoon some of the liquid mixture over the tops of the chicken to ensure they are well-coated. It’s okay if the chicken isn’t fully submerged, but it should be mostly covered.

Step 6: Pressure Cook
Secure the lid on the Instant Pot, making sure the steam release valve is set to the “Sealing” position. Select the “Pressure Cook” or “Manual” button and set the timer for 12 minutes on high pressure. If your chicken breasts are particularly thick (over 1.5 inches), increase the time to 15 minutes.

Step 7: Natural Pressure Release
Once the cooking cycle is complete, do not immediately release the pressure. Allow the Instant Pot to perform a “Natural Release” for 10 minutes. This means you simply leave it alone. This 10-minute resting period is crucial for ensuring the chicken remains tender and juicy. It allows the muscle fibers to relax and reabsorb the moisture. After 10 minutes, carefully move the steam release valve to the “Venting” position to release any remaining pressure.

Step 8: Shred the Chicken
Once the floating pin has dropped, it’s safe to open the lid. Carefully remove the chicken breasts from the Instant Pot and place them on a cutting board or in a large bowl. The chicken will be so tender that it will practically fall apart. You can shred it easily using two forks. For the fastest and easiest shredding method, use a hand mixer on a low setting directly in the bowl—it will shred the chicken perfectly in about 15 seconds!

Step 9: Finish the Dish
While the chicken is out of the pot, you can turn the “Sauté” function back on for a few minutes to reduce the remaining liquid slightly if you prefer a thicker sauce. Once you’re happy with the consistency, turn it off. Return the shredded chicken to the pot with the flavorful sauce. Add the fresh lime juice and stir everything together to coat the chicken completely. Let it sit for a few minutes to absorb all that deliciousness.

Step 10: Serve and Garnish
Your Instant Pot Mexican Shredded Chicken is now ready! Garnish with fresh cilantro if desired and serve warm.