Craving something creamy, bold, and comforting - but without any dairy? This Southwest Chicken with Coconut Lime Sauce is full of flavor and so easy to make! Juicy chicken simmers in a coconut milk sauce infused with lime, chili powder, and spices for a bright, creamy Southwest-style meal that fits keto, paleo, and Whole30 lifestyles.

Jump to:
It's the kind of meal that feels cozy enough for dinner, but fresh enough to enjoy year-round. I love serving it over cauliflower rice, but it's just as tasty over a salad or even spooned on top of scrambled eggs the next morning!
Why You'll Love It
- Creamy without any dairy
- Easy one-pan dinner
- Bursting with citrus and Southwest spice
- Works for keto, paleo, and Whole30
- Great for meal prep or leftovers
How to cook Southwest Chicken with Coconut Lime Sauce (Step by Step)
First, gather your ingredients:
- 2 lbs chicken thighs or breasts
- 1 tablespoon avocado or coconut oil
- Juice from 2 limes
- ½ cup chicken broth (use Whole30-compliant broth if needed)
- 1 tablespoon chili powder
- 1 teaspoon coriander
- 1 teaspoon garlic powder
- 1 teaspoon cumin
- 2 teaspoon paprika
- 1 teaspoon salt
- 1 can full-fat coconut milk
- ½ bunch cilantro, chopped
- 2 bell peppers, sliced thin

Preheat your oven to 350 degrees.
Season your chicken with salt and pepper. Let the tablespoon of oil heat up in a large, oven safe pan. Sear the chicken for 8 minutes on each side then put into the oven for 15 minutes.
Once the chicken is fully cooked, you're going to add all of the spices, lime juice, chicken broth, and coconut milk. Put the chicken back onto the stove on low and let it simmer with a lid on for 10-15 minutes. You want to break the chicken down further, so it shreds and let the sauce thicken. If your stove cooks a bit hot and you notice your sauce is cooking down too fast, you can add some more chicken broth.

While the chicken is simmering, sauté your bell peppers in a separate pan. If you're planning on eating this over cauliflower rice, go ahead and cook that as well.

Once your sauce has reduced down some, take two forks and shred the chicken.

Stir in the cooked bell peppers and chopped cilantro.

Serve over cauliflower rice and enjoy!

Storage & Reheat
Freezer: You can freeze for up to 2 months; thaw in the fridge overnight before reheating.
Fridge: Store leftovers in an airtight container up to 3 days.
Reheat: Warm gently on the stovetop or microwave until heated through. Add a splash of broth if the sauce thickens too much.

Southwest Chicken with Coconut Lime Sauce
Juicy chicken simmered in a creamy coconut lime sauce with bold Southwest flavor! Dairy-free, keto, paleo, and Whole30-friendly — perfect over cauliflower rice or salad.
Ingredients
- 2 lbs chicken thighs or breasts
- 1 tablespoon avocado or coconut oil
- Juice from 2 limes
- ½ cup chicken broth (Whole30-compliant if needed)
- 1 tablespoon chili powder
- 1 teaspoon coriander
- 1 teaspoon garlic powder
- 1 teaspoon cumin
- 2 teaspoon paprika
- 1 teaspoon salt
- 1 (13.5 oz) can full-fat coconut milk
- 2 bell peppers, sliced thin
- ½ bunch cilantro, chopped
Instructions
- Preheat oven to 350°F.
- Sear the chicken: Season chicken with salt and pepper. Heat oil in a large oven-safe pan and sear chicken for about 8 minutes per side until golden.
- Bake: Transfer pan to the oven and bake for 15 minutes or until chicken is cooked through.
- Make the sauce: Return the pan to the stove. Add lime juice, chicken broth, coconut milk, and all the spices. Simmer on low for 10–15 minutes with the lid on, letting the sauce thicken. If your sauce is reducing too quickly, add a splash more broth.
- Sauté peppers: In a separate pan, sauté bell peppers until tender-crisp.
- Shred chicken: Use two forks to shred the chicken directly in the sauce.
- Combine: Stir in the cooked peppers and chopped cilantro.
- Serve: Spoon over cauliflower rice, salad, or even eggs and enjoy!
Notes
- Spice it up: Add cayenne or diced jalapeño for more heat.
- Coconut milk: Use full-fat for a creamy sauce — lite versions can make it watery.
- Serving ideas: Top with sliced avocado, extra lime juice, or chopped green onions.
Recommended Products
As an Amazon Associate and member of other affiliate programs, I earn from qualifying purchases.
-
Native Forest Simple Organic Unsweetened Coconut Milk, 13.5 Fl Oz (Pack of 12)
-
McCormick Gourmet Organic Hot Mexican Chili Powder, 1.75 oz
-
Pacific Foods Organic Free Range Chicken Broth, 8oz, 24-pack
-
Italia Garden Italian Lime Juice with Pure Lime Essence, 4.23 Fl Oz, 125 Milliliter
-
Viva Naturals Organic Extra Virgin Coconut Oil, 16 Ounce
-
365 Everyday Value, Organic Riced Cauliflower, 12 oz, (Frozen)
Nutrition Information:
Yield: 4 Serving Size: 1Amount Per Serving: Calories: 448Total Fat: 31gSaturated Fat: 15gTrans Fat: 0gUnsaturated Fat: 16gCholesterol: 140mgSodium: 822mgCarbohydrates: 8.8gNet Carbohydrates: 6.2gFiber: 2.5gSugar: 3gProtein: 34.5g
More Delicious Chicken Recipes
If you loved this Southwest Chicken with Coconut Lime Sauce, try these next:
- Thai Cilantro Chicken (Keto, Gluten Free, Paleo) - Fresh herbs, bold Thai flavors, and tender chicken thighs make this a fast weeknight favorite.
- Almond Flour Fried Chicken - Crispy, golden, and totally gluten-free! A paleo and keto twist on classic fried chicken.
- Keto Rosemary Marsala Chicken - Creamy, aromatic, and so satisfying - this one feels restaurant-quality but easy enough for home!
- Greek Grilled Chicken Salad (Keto-Friendly) - Bright, zesty, and perfect for summer! Packed with Mediterranean flavors and healthy fats.
Pin for later!






paleoglutenfreeguy says
So simple but so full of flavor! Love this!
Jessica says
This spice combination sounds magical. Thanks for the yummy recipe!
Ann Marie says
YUM! Sharing this now. Also trying this recipe out I LOVE southwest chicken but wouldn't think to add it to my keto diet.. genius!
tinatsai says
I know! Tasty AND keto!
Daniela says
Loving everything about this! The flavors are spot on and of course, it rocks that it's paleo!!
tinatsai says
Thanks! I always love a tasty paleo meal!