Combine the chicken, hot sauce, and water in a pressure cooker or instant pot. Cook on high pressure for 15 minutes to ensure the chicken is fully cooked and infused with buffalo flavor. While the chicken cooks, remove the cream cheese from the refrigerator to bring it to room temperature—this is crucial for preventing lumps when you blend it into the dip later. Once the timer goes off, carefully release the pressure according to your appliance's instructions, then remove the chicken and shred it into bite-sized pieces with two forks.
Return the pot to low heat and add the room-temperature cream cheese, cheddar cheese, and ranch dressing. Stir constantly with a spatula, breaking up the cream cheese into smaller pieces as it softens. I like to use a whisk here because it helps incorporate everything smoothly without creating lumps. Continue stirring for 2-3 minutes until the mixture is completely smooth and the cheeses are fully melted and incorporated.
Add the shredded chicken from Step 1 and the green chiles to the creamy cheese mixture, along with the garlic powder. Stir everything together thoroughly until the chicken and chiles are evenly distributed throughout the dip, about 1-2 minutes. Taste the dip and adjust seasoning as needed—you might want extra hot sauce for more kick or more ranch for creaminess. Transfer the dip to a serving dish or keep it warm in a slow cooker on low heat.
Top the warm dip with a generous handful of blue cheese crumbles and the sliced green onions. I always add the garnishes right before serving so the green onions stay fresh and crisp rather than wilting into the warm dip. Serve immediately with your favorite gluten-free crackers, tortilla chips, or vegetable crudités.