Turn your Instant Pot to SAUTÉ setting. Add 1 tablespoon olive oil. Once it's hot, add chicken to the instant pot in a single layer. It's ok if they touch, but try not to overlap so that the chicken sautés evenly; you may need to work in batches. Sauté until both sides are browned, then remove and place on a plate.
Add remaining tablespoon olive oil to the Instant Pot, along with the shallots, garlic, paprika, chili powder, and sprinkle of salt and pepper. Sauté until shallots are slightly softened, about 2-3 minutes. Hit CANCEL
Stir in can of tomatoes (undrained, with the juice), lime juice, and add back the chicken to the instant pot. Try to place the chicken in a single layer if possible. Chicken will touch and overlap, but just be sure they're not stacked directly on top of one another.
Close the lid and lock. Press PRESSURE COOK (or MANUAL, depending on your Instant Pot), and cook for 10 minutes. Once Instant Pot comes to pressure and starts to countdown, allow natural pressure for 5 minutes and then use tongs and/or oven mitts to turn valve to Quick Vent for remaining 5 minutes. Once pin is down completely and it has finished venting, carefully open the lid, turn the Instant Pot off.
Stir the chicken so it can soak up the sauces a bit, then remove to a separate bowl. Shred chicken with two forks. Serve immediately, as desired. (see meal ideas in the post)
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