Add chopped raw bacon to large heavy stock over medium high heat and stir to cook. Cook bacon for 3-5 minutes until crisp to your liking. Turn heat off after bacon is done cooking.
Remove the bacon from the heavy stock pot with a slotted spoon and set aside on a paper towel to dry. Also remove the excess bacon grease from the stock pot, leaving 1-3 tbsp of bacon grease in warm stock pot.
Turn heat back on the stock pot to medium high again. Add in the chopped jalapeno, red and green bell pepper to the heated oil and stir to coat. Cook to soften the bell pepper and jalapeno for 3-5 minutes. Add in the garlic and stir to cook about 1 minute.
Add in all the paprika, cumin, salt and pepper. Stir to coat all the vegetables with the seasonings. Once the vegetables are coated with the seasonings pour in the chicken stock and turn the heat to high.
Bring the stock to a slow boil. While the stock is add in the softened cream cheese. Using a whisk, mash and melt the cream cheese into the stock. Then whisk in the cheddar cheese into the soup until melted.
Once both cheeses are melted whisk in the xanthan gum to the entire soup to thicken the soup slightly.
Fold in the cooked shredded chicken and the cream into the soup and heat through.
Serve with various garnish (cilantro, shredded cheddar, sour cream or fresh jalapenos)