Prep the jalapeño peppers by slicing ½ of jalapeño pepper into 4-5 ⅛” ring slices and set aside. Take the remaining 1 ½ jalapeños, and remove the stem, seeds, and white membrane. Finely dice the peppers and set aside. You can leave the seeds for extra spice.
Shred the sharp cheddar cheese. Set aside.
Add yeast to hot water and let sit for 5 minutes.
Add 3 cups of flour to a mixing bowl with the salt.
Once the yeast is foamy, add the flour and work the mixture into a sticky but firm dough with your hands or a firm silicone spatula. Add the diced peppers and cheese and continue to work the dough.
Cover with a damp cloth or plastic wrap and let sit for 1 hour. The dough should double in size.
Preheat the oven to 450°f.
Lightly flour a flat, dry surface and gently work the dough into a smooth, round loaf. Do not overwork the dough.
Add a large piece of parchment paper to the Dutch oven and place your dough ball inside.
Score the dough using a sharp knife with a fine edge or a razor blade. I like to score an “x” and ¼” deep.
Lightly sprinkle the loaf with some cheese, and place the jalapeño slices flat around the top of the lid.,pressing them in slightly.
Cover with the lid and cook at 450°f for 30 minutes.
At 30 minutes, remove the lid and cook for 5-10 minutes until the crust is golden brown. Tap the loaf, as it should sound like a hollow drum.
Let the loaf cool before slicing open.