In the bowl of a stand mixer, use a fork to mix the water, sugar, and yeast.
Add the flour, butter pieces, and salt.
Turn the mixer on, fitted with a dough hook attachment, and knead on low until mostly incorporated. Turn the speed up 1-2 notches and knead for about 5 minutes until the dough comes together around the hook and pulls away from the side. If it is still stuck at this point add a few more tablespoons of flour and continue kneading. The dough should be slightly tacky but not sticky. Do not over flour or your bread will be dry when baked.
Remove the dough from the bowl momentarily and spray the bowl with cooking spray. Return the dough to the bowl, cover with plastic wrap and let rise in a warm place for about 60 minutes or until doubled in size.
Grease a 9x5-inch metal loaf pan and set aside.
Once risen, tip dough out onto a clean counter and punch down lightly. Roll out into roughly 6x12-inch rectangle.
Sprinkle the cheese cubes and diced jalapeños evenly over the top.
Roll up like you would a cinnamon roll, from short end to short end and fold the ends under to seal them shut.
Place in the prepared loaf pan and place in a warm place for 20-30 minutes to get puffy and rise a little more. It doesn’t need to double in size. Preheat the oven to 325 F. During this second rise time.
When the dough has risen to just above the rim of the loaf pan, press the jalapeño slices on top very gently and sprinkle the shredded cheese.
Place in the oven and bake for 40-45 minutes or until the bread is golden brown on top. Check the bread at 30 minutes. If it’s browning too quickly, tent lightly with foil.
Remove from the oven and brush with butter, if desired. Let cool in the loaf pan for 15 minutes before running a knife along the edge and tipping over to finish cooling on a wire cooling rack.
Let cool completely before slicing or you run the risk of the bread falling apart.