Take warm water into a measuring cup or in a bowl, add oil, sugar, and yeast. Stir lightly and set aside.
In a large mixing bowl, take flour, chopped jalapeno peppers, salt, and cheese. Mix well.
Add yeast mixture into the flour mixture and mix with a wooden or rubber spatula. Mix until everything is well combined, and a soft, sticky dough is formed.
The dough should be sticky and pull away from the sides, but not wet; if it is wet, add a little more flour.
Cover the bowl with a clean kitchen towel, and place it in a warm place for an hour or until the dough is double in size.
After an hour or when the dough is double in size, using a spatula, pull the dough from the sides and fold it into the center. This way, the air will be removed from the dough, and a dough ball will be formed.
Cover the bowl again and place it in a warm place for 30 minutes.
Baking The Bread
Now pre-heat the oven to 425° F, and place your cast-iron casserole or Dutch oven with the lid into the oven. Let it preheat for 30 minutes while your dough is rising for the second time.
After the second rise, lightly dust the clean surface with flour and transfer the dough onto it.
Flour your hands, pull the sides of the dough into the center, and seal them by pinching it. Make a rough dough ball and carefully transfer it onto a large piece of parchment paper.
Top the dough with shredded cheddar cheese and jalapeno pepper rings.
Now using the oven mitts, carefully remove the hot casserole or Dutch oven from the oven. Remove the lid and place the dough with parchment paper into the casserole and cover it with the lid.
Return it to the oven and bake for 30 minutes. Remove the lid and continue baking for 10-15 minutes or until cheese on the top is golden brown.
Remove the Dutch oven or casserole from the oven, and carefully pull out the bread by lifting the parchment paper. If that is not convenient, slightly tilt the casserole or Dutch oven and slide the parchment paper with the bread.
Remove the parchment paper and let the bread cool down completely on the cooling rack. Slice the bread and enjoy.
You can keep the bread at room temperature in an airtight container for up to 3 days.
Notes
Jalapeno Peppers: Jalapeno peppers make this bread spicy. So I have removed the seeds from the jalapeno pepper, which goes into the dough. And I have kept the seeds in the jalapeno rings for the topping of the bread. But do not remove the seeds if you want to keep your bread very spicy.
Dutch Oven: I don’t have a Dutch oven, but my enameled cast-iron casserole works perfectly fine to make this bread. I have used 5.6 Qt casserole, and the minimum size you can use is 3.5 Qt to make this bread. But if you have a Dutch oven, you can use that.
Making The Bread Without Dutch Oven or Casserole
When you preheat the oven, fill the small baking pan with 1-2 cups of water. Next, place the tray with water onto the bottom rack of your oven. This way, we can create the steam necessary for baking this bread.
Line the baking tray with parchment paper or a silicone mat, and after a second rise, transfer the dough ball onto the tray.
Place the tray in the middle rack of the oven (the bottom rack will have a water-filled baking pan), and bake for 30 minutes.
After 30 minutes, carefully remove the water-filled baking pan from the oven. And continue baking the bread for 10-15 minutes or until it is golden brown.