Place the bacon in a cold Dutch oven or large pan. Turn heat to medium and cook, stirring occasionally, until browned and crispy, about 8 minutes. Remove with a slotted spoon and drain on paper towels. Set aside.
Raise heat to medium-high, add the onion and jalapeño and cook, stirring occasionally, until the onion is translucent, and the jalapeño is soft, about 5 minutes. Add the can of chilies, onion and garlic powders, ½ teaspoon salt, and 1 teaspoon pepper, and cook for 1 minute, stirring frequently. Add the enchilada sauce, chicken broth, and cream cheese, cook until the cream cheese is fully melted – you may have to whisk it. Add the Mexican cheese, stir until melted. Reduce heat and gently simmer for 15 minutes. Add the chicken, cook for another 5 minutes and serve with the reserved bacon and cilantro leaves, if desired.