Preheat oven to 400 degrees F. Cover a cooking sheet with foil.
In a small bowl, combine the chili powder, cayenne, and black pepper.
Place the bacon slices in one layer on top of the foil-covered pan.
Sprinkle the spice mixture over the bacon.
Cook for about 15 minutes or until the bacon is fully cooked.
Remove the bacon from the pan and place on a paper platter covered with a paper towel to drain.
On another baking sheet the bread slices evenly in one layer.
Spread each bread slice with softened cream cheese.
Sprinkle about 1/4 cup shredded cheese over each slice of bread.
Cut bacon into large 2-inch slices so they will fit on the bread.
Sprinkle diced jalapenos on top.
Bake in a preheated oven for about 10 minutes or until the cheese is melted and the edges of the bread are slightly toasted.
Remove from oven and serve hot. Slice each piece of Texas toast into thirds for smaller portions.