Prepare the Dry Ingredients: In a medium-sized bowl, combine the bread flour, kosher salt, shredded cheddar, and diced jalapeno. Mix these dry ingredients together until evenly distributed. Set this bowl aside.
Activate the Yeast: In a large mixing bowl, pour the warm water (ensure it’s comfortably warm, similar to a baby’s bath temperature). Sprinkle the instant yeast into the water and stir gently to combine. Let it sit for a minute to start activating.
Mix the Dough: Add the dry ingredient mixture into the yeast water bowl. Using a sturdy rubber spatula, stir everything together until no dry flour remains visible. The dough will be quite wet and sticky—that’s expected for this high hydration dough.
Fold the Dough: Using the spatula, fold the dough by pulling the edges inward towards the center and rotating the bowl. Repeat this folding motion about 8 to 10 times to help develop the dough’s structure. Cover the bowl with a clean towel.
First Rise: Place the covered bowl in a warm spot and allow the dough to rise for 1 hour. The dough should become noticeably puffier but will still be loose.
Second Folding and Rise: After the first rise, unfold the dough with your spatula again, performing the same folding technique 8 to 10 times. Re-cover the bowl and let it rise for another hour in a warm location.
Preheat the Dutch Oven: About 30 minutes before the end of the second rise, place your Dutch oven with its lid on into the oven and preheat to 450°F (230°C). This ensures the pot is hot enough to create steam and a crispy crust.
Shape the Dough: Lightly flour a clean surface and your hands. Gently turn the dough out onto the surface and flip it over to brush off excess flour. Fold the edges of the dough inward, roughly 6 to 8 times, forming a loose ball shape. Flip the dough ball seam-side down onto a large sheet of parchment paper.
Score and Top the Dough: Using a sharp knife or bread lame, score an “X” or preferred pattern on the dough surface. Spray lightly with cooking spray or brush with oil. Sprinkle the reserved cheddar cheese evenly on top and arrange the jalapeno slices decoratively.
Bake the Bread: Carefully remove the hot Dutch oven from the oven using oven mitts. Lift the parchment paper with the dough and gently place it into the pot. Cover with the lid and bake for 30 minutes.
Finish Baking Uncovered: After 30 minutes, remove the lid and continue baking for an additional 20 minutes. This step crisps the crust and enhances color.
Cool the Bread: Using the parchment paper, carefully lift the bread out of the Dutch oven and place it on a wire rack. Remove the parchment paper and allow the bread to cool completely, about 1 to 2 hours, before slicing. Cooling ensures the best texture and crumb.