In a cast iron or non-stick pan, cook sausage down until no longer pink. Once cooked, remove from pan with slotted spoon and leave fat.
Add in diced jalapeno and onion. Cook until onion is translucent.
Remove onion and jalapeno with the slotted spoon. If cooking in a cast iron, drain the fat and add all ingredients back into pan, with the exception of bread and 1/2 cup of cheddar cheese. If using a non-stick, transfer the ingredients to a casserole or oven safe baking dish.
Mix until well incorporated and top with 1/2 cup of cheese. Bake in the oven for 15-20 minutes until cheese is bubbling and just golden brown.
If cheese does not have a slight golden brown crust, turn to broil and cook for 1 minute. remove from oven and temporarily set aside
Quickly toast the bread in the heated oven (at 350) for 3-4 minutes, cut up and serve along other dippers!