
To a large Dutch oven, or similar sized pot, add the bacon, and cook over medium heat for about 6 to 8 minutes, or until browned; don't drain off any of the bacon fat.
Add the jalalpenos, and cook for about 3 to 4 minutes, or until tender.
Evenly sprinkle the flour, garlic powder, and stir to coat evenly. Tip - Do not skip this step, it's sort of like creating a rout, which is important later on so that your soup thickens properly.
Slowly add the broth, while whisking constantly.
Then add the milk or half-and-hailf, while whisking constantly.
Add the diced potatoes, bring to a boil over medium-high heat, and boil for about 10 minutes, or until the potatoes are fork-tender.
Turn off the heat, add the cream cheese, shredded cheese, and stir gently until melted and combined.
Taste the soup, and as desired add salt, pepper, and optionally cayenne pepper.**** (See Notes)
Optionally (but recommended), garnish the soup with additional jalapenos, bacon, and/or cheese before serving. Soup will keep airtight in the fridge for up to 1 week. Reheat gently on the stove or microwave, taking care not to overheat it, or heat it too quickly so the soup doesn't "break".