In a small bowl, combine the saffron threads (if using) with 1 tablespoon of hot water and set aside to steep.
Preheat your air fryer to 350°F (175°C).
In an oven-safe pan or dish that fits into your air fryer basket, heat a small amount of olive oil.
Add the chopped onion and bell peppers to the pan. Cook for 2-3 minutes until they begin to soften.
Add the minced garlic, chicken pieces, and sliced chorizo to the pan. Cook for another 2-3 minutes until the chicken begins to brown.
Stir in the Arborio rice and smoked paprika, ensuring the rice is well-coated with the flavors.
Pour in the steeped saffron threads (with the liquid), chicken or vegetable broth, and diced tomatoes. Stir well to combine.
Place the pan or dish into the air fryer basket. Make sure it's level and that there's enough space above it for the paella to expand as it cooks.
Air fry the paella at 350°F (175°C) for about 15-20 minutes or until the rice is cooked, the liquid is absorbed, and the bottom forms a delicious crispy layer. You may want to check and stir it occasionally to prevent sticking and ensure even cooking.
When the paella is done, add the frozen peas to the top and let them steam for a few minutes.
Serve the air fryer chicken and chorizo paella hot, garnished with lemon wedges, and season with salt and black pepper to taste.