Add chicken broth, chicken, green chilies, onion, potatoes, pepper, squash, garlic, salt, cumin, tomato sauce and 2 tablespoons of taco seasoning to the pressure cooker pot and gently stir.
Remove chicken and place on a cutting board, cover with foil. Using an immersion blender, blend soup until very smooth. This can also be done in batches with a blender. Be careful not to overfill the blender!