Activate the Yeast: In a large bowl, combine warm water (or milk), sugar, and yeast. Let it sit for 5–10 minutes until foamy.
Mix Dry Ingredients: In a separate bowl, whisk together the flour, salt, garlic powder, and onion powder.
Combine Ingredients: Add the melted butter and egg to the yeast mixture. Gradually mix in the dry ingredients until a shaggy dough forms.
Knead the Dough: Transfer the dough to a floured surface and knead for 8–10 minutes until smooth and elastic.
Incorporate Cheese and Jalapeños: Gently fold in the shredded cheddar and diced jalapeños, distributing them evenly.
First Rise: Place the dough in a greased bowl, cover it with a clean towel, and let it rise in a warm place for about 1–1.5 hours or until doubled in size.
Shape the Loaf: Punch down the dough to remove excess air, shape it into a loaf, and place it in a greased loaf pan.
Second Rise: Cover and let the dough rise for another 30 minutes. Meanwhile, preheat the oven to 350°F (175°C).
Bake: Bake for 30–35 minutes or until the top is golden brown and the loaf sounds hollow when tapped.
Cool & Serve: Let the bread cool in the pan for 10 minutes before transferring to a wire rack. Slice and enjoy!