Cook bacon in skillet over medium heat. Remove bacon and put on separate plate.
Add onion to bacon grease and cook for additional 3-4 minutes. Remove from heat, plate, cover and keep warm.
Add 1 tablespoon olive oil to skillet and add chicken. Cook until browned. Remove from heat and add to plate with onions cover and keep warm.
Melt cream cheese in skillet over low heat, add chicken broth, cream and minced jalapeno. Whisk gently until smooth and creamy. Add 2 cups cheddar and whisk gently until melted and creamy. Add pasta, cooked chicken and onions to cheese mixture and stir to combine.
Place in 2 quart casserole coated with nonstick cooking spray. Sprinkle with remaining cheddar and Monterey Jack.
Top with jalapeno rings, bacon and bake for 25 minutes uncovered.