Add the water to a large mixing bowl. Sprinkle with the yeast and allow to sit for a few minutes until the yeast begins to bloom.
Stir in the flour, salt, cubed cheddar and diced jalapeno. Stir together using large spoon until the mixture is fully combined and no flour remains.
Knead the dough 8-10 times.
Cover with a towel and allow to rise for 1 hour.
After an hour, line a baking sheet with parchment paper. Knead the dough another 8-10 times. Form into a round loaf and place on the prepared baking sheet. Allow the dough to rest while your oven preheats to 450 degrees.
Sprinkle the dough with the shredded cheddar and press some of the jalapeno slices into the top of the loaf.
Bake for 25-35 minutes until a wooden skewer inserted into the middle comes out clean.
Allow to cool before slicing.