Dice the yellow onion and red bell pepper into 1/2-inch pieces, chop the celery stalks into 1/4-inch pieces, and mince the fresh garlic cloves. Measure out all your spices (ground cumin, cilantro powder, red chili powder, mild chili powder, salt, and cracked black pepper) into a small bowl so they're ready to add quickly. I like to combine my dry spices ahead of time so I can add them all at once—this prevents any from scorching while others are still going in.
Heat the olive oil in a large pot or Dutch oven over medium-high heat. Once shimmering, add the diced onion and cook for about 3 minutes, stirring occasionally, until it becomes translucent and starts to soften. Add the ground turkey and cook for 3-4 minutes, breaking it apart with a spoon as it cooks, until the turkey is no longer pink and begins to brown lightly. This initial browning builds a flavorful foundation for your chili.
Add the diced red bell pepper, celery, minced garlic, and the combined dry spice mixture from Step 1 to the pot. Stir everything together and cook for about 3 minutes, stirring frequently, until the vegetables begin to soften and the spices become fragrant. This brief cooking time allows the cumin and chili powders to bloom in the fat, releasing their essential oils and deepening the overall flavor complexity of the chili.
Pour in the canned diced tomatoes (with their juice), tomato puree, chicken stock, balsamic vinegar, and coconut aminos. Stir well to combine all ingredients and scrape up any browned bits from the bottom of the pot—these bits carry concentrated flavor. Taste the chili and adjust seasoning with additional salt and pepper as needed. I find that a pinch more salt at this stage helps bring out the depth of the spices and tomatoes.
Reduce heat to medium-low, cover the pot with a lid, and simmer for 30 minutes, stirring occasionally. The gentle heat allows the flavors to meld together while the liquid reduces slightly and thickens. During the last few minutes of simmering, prepare your garnishes: slice the avocado just before serving (to prevent browning), chop the fresh cilantro, and cut lime wedges. This timing ensures everything is fresh and ready to serve.
Taste the chili after simmering and adjust seasoning one final time if needed. Ladle the chili into bowls and top each serving with sliced avocado, a dollop of sour cream (if using), fresh cilantro, and a squeeze of lime juice. The brightness of the lime and cilantro, richness of the avocado, and creaminess of the sour cream create a balanced, satisfying finishing touch to this warming keto-friendly chili.