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In a large stock pot, cook the diced bacon over medium heat until crispy, about 5-7 minutes. Remove bacon with a slotted spoon and set aside, leaving the bacon fat in the pot.
In the same pot with the bacon fat, add the chopped onion and jalapeños. Cook for about 5 minutes until the vegetables have softened.
Add minced garlic and cook for another minute until fragrant.
Sprinkle flour over the vegetables and stir to coat. Cook for 1-2 minutes to remove the raw flour taste.
Gradually pour in the chicken broth while stirring constantly to prevent lumps from forming. Stir in the diced potatoes. Bring to a boil and cook for 10-15 minutes until the potatoes are fork tender.
Add the heavy cream and bring the mixture to a simmer. Cook for about 5 minutes, stirring
Occasionally, until the soup starts to thicken.
Reduce heat to low and add the cubed cream cheese. Stir until the cream cheese is fully melted and incorporated into the soup.
Add the shredded cheddar cheese, salt, smoked paprika, cumin, and pepper. Stir until the cheese is melted and the spices are well combined.
Return most of the cooked bacon to the soup, reserving some for garnish. Simmer for an additional 5 minutes.
Serve hot, garnished with chopped cilantro, reserved bacon bits, and additional shredded cheese if desired.