In a large pot over medium heat, cook the bacon stirring occasionally until crisp about 8-10 minutes. Transfer the bacon to a paper towel lined plate. Leave about 1/4 cup bacon fat in the pot.

Add onions, green bell peppers, jalapenos, garlic, and 1/2-teaspoon salt to the pot, and cook over medium heat stirring often until softened about 5-6 minutes.

Stir in the flour until it coats the vegetables and forms a paste that starts to stick to the bottom of the pot about 1-2 minutes.

Whisk in broth and milk until combined. Bring to a boil, then reduce the heat to medium-low and simmer, stirring occasionally until the liquid is reduced by one-quarter and slightly thickened about 10 minutes.

Stir in softened cream cheese cubes until fully melted. Add chicken and three-quarters of the bacon. Cook stirring until the chicken and bacon are heated through about 1-minute. Season with remaining 1/2-teaspoon salt.

Ladle soup into bowls and top with shredded cheddar cheese, the remaining bacon, and sliced jalapenos if desired, Enjoy!