Combine the Dry Ingredients: Add the bread flour, kosher salt, 2 cups shredded cheddar cheese, and diced jalapeno to a medium mixing bowl. Stir until the ingredients are evenly distributed, then set aside. Activate the Yeast: Pour the warm water into a large mixing bowl and add the instant yeast.The water should feel warm but not hot, similar to a baby's bath water. Make the Dough: Add the flour mixture to the bowl containing the yeast and water. Use a rubber spatula to stir until everything is combined and no dry streaks of flour remain. The dough will be loose because it is a high-hydration dough. Fold the Dough: Use the spatula to pull the dough from the outside of the bowl toward the center. Turn the bowl slightly and repeat until the dough has been folded into itself 8–10 times. First Rise: Cover the bowl with a towel and place it somewhere warm. Let the dough rise for 1 hour.
Fold Again: After the first hour, use the rubber spatula to fold the dough toward the center another 8–10 times, turning the bowl slightly as you work.
Second Rise: Cover the bowl again with the towel and let the dough rise in a warm place for 1 more hour.
Preheat the Dutch Oven: Halfway through the second rise, place the Dutch oven with its lid on inside the oven. Preheat the oven to 450°F and allow the Dutch oven to heat for a full 30 minutes. Prepare the Parchment: Set out a piece of parchment paper large enough to fit inside the Dutch oven with some overhang.
Turn Out the Dough: Lightly flour a counter or cutting board and flour your hands.Turn the risen dough onto the floured surface, then flip it over and brush away any excess flour. Shape the Loaf: Fold the corners of the dough toward the center approximately 6–8 times, continuing until a rough ball forms.
Transfer to Parchment: Flip the shaped dough onto the prepared parchment paper.
Score the Dough: Use a sharp knife to carefully score the top of the dough, making an X or another simple cut.
Add the Topping: Quickly spray the dough with cooking spray or brush it lightly with oil. Sprinkle the reserved 1/3–1/2 cup cheddar over the top, then arrange the sliced jalapenos over the cheese. Transfer to the Dutch Oven: Using oven mitts, carefully remove the preheated Dutch oven from the oven and take off the lid. Use the parchment paper to carefully lower the topped dough into the hot Dutch oven. Covered Bake: Put the lid on the Dutch oven and return it to the oven. Bake for 30 minutes with the lid on.
Finish Baking: Remove the Dutch oven lid and continue baking the bread for another 20 minutes, allowing the crust to become crisp and browned.
Remove the Bread: Take the Dutch oven from the oven. Tilt it slightly and use the parchment paper to slide the bread and parchment out of the pot. Cool Completely: Remove the parchment paper and place the bread on a wire rack. Let it cool for 1–2 hours before slicing. For the best texture, allow the loaf to cool completely before cutting.