In a large pot over medium heat, add a drizzle of oil and toss in the diced onions and minced garlic. Sauté for 3–5 minutes until the onions are translucent.

Stir in the chopped jalapenos and crumbled bacon (if using). Cook for another 2–3 minutes.

Lower the heat and introduce the cream cheese, stirring constantly for 3–4 minutes until melted.

Gradually pour in the chicken broth, stirring continuously and heat until a gentle simmer, about 5 minutes.

Once simmering, let it cook uncovered for approximately 20 minutes, stirring occasionally.

Reduce the heat to low and stir in the sour cream and cheddar cheese until completely melted, about 2–3 minutes.

Taste and adjust seasoning with salt and pepper as needed before serving.