While hot dogs cook, combine cream cheese, sour cream, 1 cup cheddar cheese, 1 cup Monterey Jack cheese, green onions, finely chopped jalapeños, and all but 2 tablespoons of the bacon in large bowl. Season with salt and pepper to taste.
Transfer mixture to oven safe baking dish and top with remaining cheeses, bacon and sliced jalapeños. Bake 15-20 minutes, until cheese is melted and starting to brown.
Slice hot dogs in quarters and serve with hot dip.