In a large skillet, brown shredded chicken in butter or margarine. Add onions, jalapeno peppers, garlic, basil and oregano. Then add the spaghetti sauce, tomato sauce and salsa/picante sauce. Stir all together. Cover skillet and simmer for 10 minutes over low heat.
In a lightly greased 9x13 inch baking dish, place a layer of tortillas, then a layer of the chicken/sauce mixture, then a layer of mozzarella cheese. Repeat layers twice, then top casserole with Cheddar cheese and bake in the preheated oven for about 1 hour, until cheese is bubbly.