In a large Dutch oven, cook chopped bacon over medium heat for about 5–7 minutes until crispy and golden brown. Transfer the bacon to a paper towel-lined plate, leaving the rendered fat in the pot.

In the same pot, add chopped yellow onion and sauté for 3–5 minutes until translucent. Incorporate minced garlic and diced jalapeños, cooking for 1–2 minutes until aromatic.

If using raw chicken, add it to the pot, sear for 3–4 minutes until lightly browned. If using pre-cooked chicken, skip this step.

Pour in chicken broth, scraping the bottom to deglaze. Bring to a low boil, reduce heat, and let it simmer uncovered for 15–20 minutes.

Shred the chicken using two forks and return it to the pot.

Reduce heat to low and stir in softened cream cheese, mixing until fully melted. Add cheddar cheese and heavy cream, stirring until combined.

Let the soup simmer gently for an additional 5–7 minutes, stirring occasionally. Adjust seasoning with salt, pepper, and smoked paprika.

Ladle the soup into bowls and top with crispy bacon, extra cheese, fresh jalapeños, and your choice of garnishes.