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Place chicken, tomatoes, broth, water, taco seasoning and salsa in the Instant Pot. Set to manual mode and cook for 12 minutes on high.
Do a quick release of pressure.
Remove chicken and add softened cream cheese to Instant Pot. Stir cream cheese into soup until it is melted and fully incorporated.
Shred chicken using 2 forks and return to soup. Stir well and serve. Top with avocado slice and cheese.