Preheat your oven to 425°F. Line a baking sheet with parchment paper for easy cleanup.
In a large bowl, combine the halved baby potatoes, olive oil, chili powder, cumin, garlic powder, onion powder, smoked paprika, salt, black pepper, and cayenne pepper (if using). Toss until the potatoes are evenly coated.
Spread the seasoned potatoes in a single layer on the prepared baking sheet. Roast in the preheated oven for 25-30 minutes, or until the potatoes are golden brown and tender, stirring halfway through for even cooking.
Once cooked, remove the potatoes from the oven and transfer them to a serving bowl. Drizzle with lime juice and sprinkle with fresh cilantro. Toss gently to combine.
Serve warm as a side dish or as a topping for tacos or burrito bowls.