Creating Southwestern Baked Chicken is straightforward and can be accomplished with these simple steps:

1. Preheat your oven to 400°F (200°C).
2. Prepare the Chicken: Pat the chicken thighs dry with paper towels and place them in a large mixing bowl.
3. Mix the Seasoning: In a small bowl, combine the olive oil, chili powder, cumin, garlic powder, onion powder, smoked paprika, salt, and pepper.
4. Coat the Chicken: Pour the seasoning mixture over the chicken and rub it in evenly to ensure each piece is well-coated.
5. Add Lime Juice: Squeeze lime juice over the coated chicken for added zing.
6. Arrange in Baking Dish: Place the seasoned chicken thighs skin-side up in a large baking dish.
7. Bake: Cook in the preheated oven for 50-60 minutes, or until the internal temperature reaches 165°F (75°C).
8. Rest: Remove from the oven and let the chicken rest for about 10 minutes. This helps retain moisture.
9. Garnish: If desired, sprinkle fresh cilantro over the top before serving.

Following these steps will ensure that your Southwestern Baked Chicken turns out tender, flavorful, and absolutely delicious.