In a large pot or Dutch oven, heat the olive oil over medium heat. Add the diced onion and bell pepper. Cook for about 5 minutes, or until the onions are translucent and the peppers have softened. Stir in the minced garlic and cook for another minute until fragrant.
Add the ground turkey to the pot. Increase the heat slightly and cook, breaking the meat apart with a wooden spoon, until it is fully browned and no pink remains. Drain any excess liquid or fat from the pot if necessary.
Stir in the chili powder, cumin, smoked paprika, salt, and pepper, ensuring the meat and vegetables are well-coated. Pour in the diced tomatoes, tomato sauce, and kidney beans. Bring the mixture to a gentle boil, then reduce the heat to low. Cover and simmer for 20 to 25 minutes to let the flavors meld together.
Ladle the hot chili into individual bowls. Top each serving with a generous 1/4 cup of cottage cheese. The heat from the chili will soften the cheese, making it creamy and delicious. Garnish with fresh cilantro or green onions if desired.