Place the chopped bacon in a cold 5- to 6-quart Dutch oven. Set the pot over medium heat and cook for 7 to 9 minutes, stirring occasionally, until the bacon is browned and crisp.

Use a slotted spoon to transfer the bacon to a paper towel-lined plate. Leave about 2 tablespoons of bacon fat in the pot. Carefully remove any excess.

Increase the heat to medium-high: Add the chicken pieces in an even layer and cook for 5 to 7 minutes, stirring occasionally, until lightly browned and no longer pink on the outside. The chicken does not need to be fully cooked yet. Transfer it to a clean plate.

Reduce the heat to medium: Add the diced onion and jalapenos to the pot. Cook for 4 to 5 minutes, stirring and scraping up the browned bits, until the onion is translucent and the peppers have softened. Add the garlic and cook for 30 seconds.

Sprinkle the flour, smoked paprika, onion powder, salt, and black pepper over the vegetables. Cook for 1 minute, stirring constantly. The mixture should look pasty and no dry flour should remain.

Slowly pour in 1 cup (240 ml) of the chicken broth while whisking. Once the mixture is smooth, add the remaining 3 cups (720 ml) of broth. Scrape the bottom of the pot to release any remaining browned bits.

Return the browned chicken and any accumulated juices to the pot. Bring the soup to a gentle simmer over medium heat, then reduce the heat to medium-low. Simmer uncovered for 8 to 10 minutes, until the chicken reaches 165°F (74°C) and the broth has thickened slightly.

Reduce the heat to low: Add the softened cream cheese a few cubes at a time, whisking after each addition. Continue whisking until the cream cheese is fully incorporated. Small white streaks indicate that it needs more mixing.

Stir in the heavy cream: Add 1 cup (115 g) of the shredded cheddar in three additions, stirring until each addition melts before adding the next. Keep the soup below a simmer so the dairy stays smooth.

Stir three-quarters of the cooked bacon into the soup. Reserve the remaining bacon for serving. Heat over low for 2 to 3 minutes, until the soup is steaming and thick enough to lightly coat the back of a spoon.

If the soup is thicker than desired, stir in 2 to 4 tablespoons (30 to 60 ml) of water. Do not bring it to a rapid boil, which can cause the cheese and cream to separate.

Remove the pot from the heat and let the soup stand for 5 minutes. Ladle it into bowls and top with the remaining 1/2 cup (55 g) cheddar, reserved bacon, sliced jalapeno, and chives as desired.