In a large bowl, stir the instant yeast and salt into the warm water until dissolved.
Add the bread flour, chopped jalapeno peppers, 2.5 cups of cheddar cheese, and seasonings. Stir together until a sticky dough forms. If it feels too sticky, mix in up to 1/2 cup extra bread flour.
Fold the dough from the outer edges into the center several times, rotating the bowl as you go. Cover the dough with a kitchen towel and set in a warm place for 1 hour, until the dough rises.
Fold the dough again from the outer edges into the center, then cover and rest another 30 minutes to 1 hour.
While the dough is resting, preheat oven to 450 degrees F. Set the Dutch oven with the lid into the hot oven and heat for 30 minutes.
Transfer the dough onto parchment paper dusted with flour and form into a round loaf. I use a rubber spatula. Score the top of the bread with a knife, then brush the top of the loaf with olive oil.
Top with the remaining shredded cheddar cheese and the jalapeno slices.
Carefully remove the hot Dutch oven from the oven and remove the lid. Lift the parchment paper and dough and place into the hot Dutch oven. Cover with the hot lid and bake for 30 minutes.
Remove the lid and bake for 20 minutes or longer, until a golden brown crust develops.
Remove the bread from the Dutch oven and rest on a wire rack for at least 10 minutes before slicing. 1 hour is preferred.