Cook manicotti according to directions. Combine chicken, 1 1/2 c. Mont. Jack cheese, cheddar cheese, sour cream, half the onion, and 6 T. chiles.
Combine soup, salsa, milk, and remaining onions and chiles. Spread 1/2 c. mixture in greased 9 x 13 pan. Stuff each shell with 1/4 c. chicken mixture. Arrange over sauce. Pour remaining sauce over. Cover and bake @ 350 degrees for 30 minutes. Uncover and sprinkle with remaining Mont. Jack cheese. Bake 10 minutes longer.
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