In a small bowl, combine 1 cup of warm water, 2 ¼ teaspoons of instant yeast, and 1 tablespoon of sugar. Stir gently and let it sit for about 5 to 10 minutes until it becomes frothy and bubbly.

In a large mixing bowl, combine 3 cups of bread flour and 1 teaspoon of salt. Add the frothy yeast mixture along with 2 tablespoons of olive oil or melted butter. Mix until a soft dough forms.

Toss 1 ½ cups of shredded sharp cheddar cheese and 2 to 3 diced fresh jalapeños in a sprinkle of flour to prevent them from sinking. Gently fold them into the dough.

Transfer the dough into a lightly greased bowl, turning it to coat all sides. Cover with a damp cloth and let it rise in a warm place until doubled in size, about 1 to 1.5 hours.

Gently deflate the risen dough on a floured surface. Shape it into a loaf and place in a greased loaf pan. Cover it again and let it rise until puffy, about 30-45 minutes.

Preheat your oven to 375°F (190°C). Bake the loaf for 35 to 40 minutes until golden brown and sounds hollow when tapped.

Allow the jalapeño cheddar bread to cool in the pan for 5 minutes before transferring it to a wire rack to cool completely.