Preheat your oven to 385°F and line baking sheets with parchment paper. While the oven heats, prepare your ingredients: cook the bacon until crispy, then chop into 1/2-inch pieces and set aside. Remove seeds from the jalapeño and finely chop it, then cut the chilled cream cheese into 1/2-inch cubes (keeping it cold is important for flaky biscuits). Shred the cheddar cheese and have all ingredients ready before mixing—this prevents overworking the dough.
In a large bowl, whisk together the flour, baking powder, sugar, salt, and garlic powder. Make sure everything is evenly distributed so the leavening agents and seasonings are consistent throughout the dough.
Cut the cold butter into small pieces and add to the dry mixture. Using a pastry cutter, two knives, or your fingertips, work the butter into the flour until the mixture resembles coarse breadcrumbs with some pea-sized pieces of butter remaining. I prefer using my fingertips because it gives me better control—you want those butter pieces to stay cold and distinct so they create steam pockets for flaky layers.
Pour the buttermilk into the butter-flour mixture and gently stir until just combined—the dough should be slightly shaggy and moist. Now fold in most of the bacon, jalapeño, cream cheese cubes, and cheddar cheese, reserving a small handful of each for topping. Don't overwork the dough; a few folds are all you need to distribute the mix-ins without toughening the biscuits.
Using a 2-inch ice cream scoop or a spoon, drop biscuit dough onto the prepared baking sheets, spacing them about 2 inches apart. Top each biscuit with a small pinch of the reserved bacon, jalapeño, and cheese mixture. I like to scatter these toppings generously on top because they add amazing flavor and texture to the finished biscuits.
Place the baking sheets in the preheated 385°F oven and bake for 11-13 minutes, until the bottoms are golden brown and the tops are lightly golden. Check around the 11-minute mark since oven temperatures vary—the biscuits should be set but still tender inside.