Cook the Bacon: In a large pot or Dutch oven, cook the chopped bacon over medium heat until crispy. Remove the bacon pieces and set aside, leaving the rendered fat in the pot.

Sauté Vegetables: Add 1 tablespoon of butter to the pot with the bacon fat. Once melted, add the finely chopped onion and sauté until translucent, about 3 minutes. Add the minced garlic and chopped jalapeños, cooking for an additional 2 minutes until fragrant.

Create the Roux: Sprinkle the all-purpose flour over the sautéed vegetables, stirring continuously for about 2 minutes to eliminate the raw flour taste.

Add Liquids and Potatoes: Gradually pour in the chicken broth, stirring constantly to ensure a smooth mixture. Add the cubed potatoes and bring the soup to a boil. Once boiling, reduce the heat to a simmer and cook until the potatoes are tender, approximately 10-15 minutes.

Incorporate Dairy and Chicken: Stir in the half-and-half, softened cream cheese, and shredded cheddar cheese. Continue stirring until all the cheeses are fully melted and the soup is creamy. Add the shredded cooked chicken and let the soup heat through for another 5 minutes.

Season and Serve: Taste the soup and season with salt and freshly ground black pepper as needed. Serve hot, garnished with crumbled bacon, fresh jalapeño slices, extra cheddar cheese, chopped green onions, or croutons, if desired.