Cook chopped bacon in a large pot over medium heat until crispy, about 8-10 minutes. Remove bacon with slotted spoon and set aside, leaving 2 tablespoons bacon grease in pot.

Add diced onion to bacon grease and sauté 4-5 minutes until softened. Add garlic and diced jalapeños, cooking 2-3 minutes until fragrant.

Push vegetables to side of pot, add butter to center. Once melted, sprinkle flour over butter and whisk continuously for 2 minutes to create a roux.

Gradually pour in chicken broth while whisking constantly to prevent lumps. Bring to gentle simmer and cook for 5 minutes.

Reduce heat to low and add softened cream cheese in chunks, stirring continuously until completely melted and incorporated.

Pour in heavy cream and add smoked paprika. Let soup simmer gently for 10-15 minutes, stirring occasionally until thickened.

Add shredded cheddar cheese gradually, stirring constantly until melted. Stir in most of the cooked bacon (reserve some for garnish). Season with salt and pepper to taste.

For grilled cheese dippers: Butter one side of each bread slice. Place cheese between two slices with buttered sides facing out. Add jalapeños if desired.

Heat skillet over medium heat and cook sandwiches 3-4 minutes per side until golden brown and cheese is melted. Press gently with spatula for even browning.

Cut grilled cheese into strips or triangles. Ladle soup into bowls, garnish with reserved bacon, fresh parsley, and extra jalapeño slices. Serve immediately with grilled cheese dippers.