Pat the steak dry with paper towels, then mix together the chili powder, garlic powder, onion powder, cumin, salt, black pepper, and smoked paprika. Rub the seasoning evenly all over both sides of the steak and let it rest at room temperature for at least 10 minutes.
Heat 1 tablespoon olive oil in a cast iron skillet over medium-high heat, then add the sliced green and red bell peppers and yellow onion. Cook for 6–8 minutes, stirring occasionally, until tender and lightly caramelized, then transfer to a plate and set aside.
Heat 1 teaspoon olive oil in the skillet over medium-high heat until just smoking, then lay the steak flat and sear undisturbed for 3–4 minutes per side until a crust forms. Cook to 130–135°F (54–57°C) for medium-rare or 140–145°F (60–63°C) for medium using an instant-read thermometer.
Remove the steak from the skillet, tent loosely with aluminum foil, and let rest for at least 5 minutes. Then slice very thin (about ¼ inch / 6mm) against the grain and season with a little extra salt if needed.
Lay a flour tortilla flat and sprinkle ¼ cup (28g) shredded cheese over one half, then top with 3–4 oz (85–113g) sliced steak, a spoonful of peppers and onions, and another ¼ cup (28g) of cheese. Fold the empty half over to form a half-moon and press gently to seal. Repeat with the remaining 3 tortillas.
Melt ½ tablespoon butter in the cleaned skillet over medium heat, add one quesadilla, and cook for 2–3 minutes per side undisturbed until deeply golden and crispy. Transfer to a cutting board, rest for 1 minute, then repeat with the remaining quesadillas adding fresh butter between each.
Cut each quesadilla into 3 wedges using a sharp knife or pizza cutter, garnish with fresh cilantro if using, and squeeze lime over the top. Serve immediately with sour cream, guacamole, and salsa on the side.