Preheat the oven to 400°F (200°C) and lightly spray a muffin tin with cooking spray.
In a skillet over medium-high heat combine the shredded chicken, taco seasoning, and water; stir and cook until the sauce thickens and the water has evaporated.
Remove the skillet from the heat and stir in about 1 tablespoon lime juice, adjusting to taste.
While the chicken cooks, open the biscuit package and press each biscuit into the bottom and up the sides of the prepared muffin cups to form shells.
Spoon about 1 1/2 tablespoons of the chicken mixture into each biscuit shell, then divide the shredded cheese evenly over the tops.
Bake for 8–10 minutes or until the biscuit cups are golden brown and the cheese is melted.
Remove from the oven and top each cupcake with desired toppings such as lettuce, tomato, sour cream, guacamole, and salsa, then serve warm.