Prep the oven and pan: Heat oven to 375°F (190°C). Grease a 9x13-inch baking dish.
Cook the bacon: In a skillet over medium heat, cook bacon until crisp. Drain on paper towels and crumble.
Reserve 1 tablespoon bacon grease in the pan.
Sauté the jalapeños: Add diced jalapeños to the skillet with the bacon grease. Cook 2–3 minutes until slightly softened. Stir in minced garlic for 30 seconds.
Remove from heat.
Make the sauce: In a large bowl, beat the softened cream cheese until smooth. Mix in sour cream (or yogurt), mayonnaise, onion powder, smoked paprika, a pinch of salt, and black pepper.
Add the cheeses: Stir in 1 cup cheddar and 1/2 cup Monterey Jack.
Combine with chicken: Fold in the cooked chicken, sautéed jalapeños and garlic, and half the crumbled bacon. Taste and adjust seasoning.
Assemble the casserole: Spread the mixture evenly in the prepared baking dish.
Top with remaining cheddar and Monterey Jack.
Add a crunchy topping (optional): For low-carb, sprinkle crushed pork rinds. For classic crunch, toss 1 cup breadcrumbs with 1 tablespoon melted butter and scatter over the top.
Bake: Bake 20–25 minutes, until the casserole is hot and the cheese is bubbly and starting to brown.
Finish and serve: Sprinkle with remaining bacon and sliced green onions. Let rest 5 minutes before serving so it sets slightly.