Preheat your oven to 350°F (175°C).
In a skillet, heat the olive oil over medium heat and sauté the chopped onion until translucent, about 5 minutes.
In a large bowl, mix together the shredded chicken, green enchilada sauce, diced green chiles, sour cream, sautéed onions, and a pinch of salt and pepper.
Spread a thin layer of the chicken mixture on the bottom of a 9×13 inch baking dish.
Place 4 corn tortillas over the chicken mixture, overlapping as necessary.
Spread a third of the remaining chicken mixture over the tortillas, then sprinkle with a third of the cheddar and Monterey Jack cheeses.
Repeat the layers two more times, ending with a layer of cheese on top.
Cover the dish with foil and bake in the preheated oven for 25 minutes.
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