Place the white rice in a bowl and cover with about 2 inches of water; soak at least 15 minutes (or overnight if possible). Drain and set aside.
Pat chicken thighs dry and sprinkle evenly with paprika, garlic powder, and sea salt.
Plug in the Instant Pot and press Sauté. Add the avocado oil and let it heat for a few minutes until shimmering.
Working in batches if needed, place chicken skin-side down and sear 4–5 minutes until golden-brown and crispy; flip and brown the other side 4–5 minutes. Remove seared chicken to a plate.
Add the butter or ghee and chopped onion to the Instant Pot and sauté 3–5 minutes until the onion is translucent; add minced garlic and cook 30 seconds until fragrant.
Add the drained rice and chili powder; sauté while stirring 2–3 minutes to toast the rice and coat with spices.
Stir in dried oregano, chicken broth (or water), tomato paste, and optional salsa until combined.
Return the seared chicken to the pot, nestling it into the rice mixture. Secure the lid, set to Manual/Pressure Cook on High for 12 minutes, and ensure the pressure valve is closed.
When the cook cycle finishes, allow a natural pressure release for 10 minutes, then perform a quick release for any remaining pressure and open the lid.
Fluff the rice with a fork. Serve immediately, removing chicken skin if desired (it will be soft after pressure cooking).
