In a small bowl, combine the sugar, garlic powder, onion powder, oregano, chili powder, smoked paprika, salt, and pepper to create your dry rub. In another bowl, mix the softened cream cheese, shredded cheddar cheese, lime juice, and 2 tablespoons of the spice rub until well combined. This creates a flavorful filling that will stay moist and delicious inside the chicken. Set both mixtures aside until ready to use.

Halve each jalapeño lengthwise and carefully remove the seeds and white membrane—this reduces heat while keeping the flavor. Lay each chicken breast on a cutting board and, using a sharp knife, slice horizontally through the thickest part to create a pocket without cutting all the way through (like opening a book). Place the chicken between plastic wrap or in a sealed bag and pound gently to an even 1/4-inch thickness. This ensures even cooking and helps the chicken stay juicy.

Lay out a pounded chicken breast and place one halved jalapeño and a generous spoonful of the cheese mixture from Step 1 inside the pocket. Fold the chicken closed to encase the filling. Rub the exterior generously with the remaining dry spice rub from Step 1. Wrap 2 slices of bacon around each stuffed chicken breast, securing with toothpicks if needed to hold everything in place during cooking. I like to wrap the bacon in a slight spiral so it makes contact with the grill and crisps up nicely.

Preheat your grill to 350°F-375°F (medium heat). Place the bacon-wrapped chicken breasts directly on the grates and grill for 6 minutes on the first side without moving them—this allows the bacon to crisp and the chicken to develop a nice crust. Flip carefully and cook the other side for another 6 minutes until the chicken reaches an internal temperature of 165°F at the thickest point. The bacon should be mostly crispy at this point.

Lower the grill heat slightly or move the chicken to a cooler zone of the grill. Brush both sides of the chicken generously with BBQ sauce and cook for 3-4 minutes more, turning once halfway through to caramelize the sauce on both sides. I find that the sugar in the BBQ sauce caramelizes best on a slightly lower heat, preventing it from burning while still developing that glossy, caramelized exterior.

Remove the chicken from the grill and transfer to a plate or cutting board. Let it rest for 4 minutes—this allows the juices to redistribute, keeping the meat tender and moist. Carefully remove the toothpicks and serve immediately while the cheese filling is still warm and creamy.