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In a medium bowl, add yeast, ½ cup warm water, and sugar. Stir and let rest for 3 to 5 minutes until foamy.
Add remaining water, flour, salt, and olive oil. Using a dough hook, mix until everything comes together.
Cover with plastic wrap and let rest for 20 minutes at room temperature.
Wet your hands, and while still in the bowl, pull and stretch the edges of the dough and fold them into the middle. Turn the bowl and repeat until all edges have been incorporated.
Cover once again and continue to let rest for 30 minutes.
Add the cheddar cheese and most of the jalapenos to the dough.
Wet your hands once again, and holding the dough from the middle, stretch and fold the dough over itself 3 to 4 times.
Repeat the resting and folding process one or two more times.
Let rest for 40 minutes at room temperature, or 20 minutes at room temperature and 1-1 ½ hours in the fridge.
Generously oil a 9x13 inch baking sheet with 2 tbsp olive oil.
Transfer the dough onto the baking sheet. Oil your fingers and stretch the dough into the shape of the pan.
Cover lightly with plastic wrap and let rest for 50 to 60 minutes until puffy.