Preheat the oven and cook the pasta to al dente or a minute shy of al dente while you make the sauce. The noodles will cook a bit more in the oven later so don’t overcook your pasta.
Cook the bacon in a large pot or a tall-sided skillet until the bacon is crisp. Remove the bacon to a paper-towel-lined plate and set aside.
Add the onion and bell pepper to the bacon grease and cook for about 5 minutes until they’re soft and the onions are translucent. Add the garlic and 1 tablespoon of butter and cook for 1 more minute.
Sprinkle the flour over the onions/peppers and toss to coat. Cook for 2-3 minutes.
Pour the chicken broth in slowly while whisking. Make sure to scrape the bottom of the pan with a rubber or silicon spatula if you have any stuck pieces. This adds good flavor.
Add in the Italian seasoning and salt and pepper
Next, add the milk and cream and whisk till combined and smooth. In Tablespoon-sized pieces add the softened cream cheese and whisk till smooth. This will be hard to do unless your cream cheese is extra soft.
Drain the tomatoes with green chilies, add them to the sauce, and stir. Add ½ cup of the mozzarella cheese and stir till melted.
Add in the shredded chicken, half the crumbled bacon, and the pasta. Use tongs to toss together, for the easiest mixing. The sauce will thicken a bit more in the oven and as it cools.
If you’re not using an oven-safe pot, transfer to a 10x10 casserole dish and top with the rest of the crumbled bacon followed by the remaining ¾ cup mozzarella cheese.
Bake for about 15-20 minutes till cheese is melted.
Remove from oven and sprinkle chopped parsley on top, if desired.