Heat olive oil in a large pot or Dutch oven over medium heat. Add the diced onion and sauté for about 5 minutes until softened, stirring occasionally to avoid browning.
Stir in the minced garlic and diced jalapeños, cooking for an additional 2 minutes until fragrant.
Add the chicken breasts to the pot along with the chicken broth. Bring this mixture to a boil, then reduce the heat and let it simmer for about 15 minutes until the chicken is cooked through.
Remove the chicken from the pot and shred it using two forks, ensuring it's nice and fine before returning it back to the pot.
Stir in the heavy cream along with ground cumin and paprika while seasoning with salt and pepper to your liking.
Add softened cream cheese, stirring until fully incorporated followed by mixing in shredded cheddar cheese until it melts completely.
Let the soup simmer for an additional 5 minutes so all flavors can blend seamlessly; if using bacon, mix it in at this stage before serving hot garnished with fresh cilantro on top.