In a medium bowl, combine chicken, chiles, cream cheese, cheddar, and garlic powder. Season with salt and pepper to taste.
Heat tortillas 15-30 seconds on each side in a large skillet over medium-high heat until tortillas are warmed. Alternatively, microwave tortillas 30 seconds.
Place 2 tablespoons chicken filling on each tortilla, roll up tightly, and place seam-side down on a sheet pan.
Preheat air fryer to 400F for 3 minutes. Spray basket well with pan spray and working in batches, arrange taquitos in a single layer. Spray well with pan spray and air fry taquitos 6-8 minutes, flipping once halfway through cooking until taquitos are crispy and filling is bubbly. Repeat cooking with remaining taquitos.
Serve taquitos warm with sour cream, tomatoes, lime wedges, and cilantro if desired. Enjoy!