Bake the bacon on a sheet pan at 350–375°F for 12 to 15 minutes, until crisp. Drain on paper towels. Regular bacon cooks faster than thick-cut, so watch it.
Bring a large pot of water to a boil and add 1/2 teaspoon salt. Salting the water lets the potatoes soak up flavor as they cook — don't skip it.
Wash and cube the potatoes small. Leave the skins on; Yukon Gold skins are thin enough that you'll never notice them.
Add the potatoes to the boiling water and cook 14 to 16 minutes, until fork tender. Lay a wooden spoon across the pot to keep it from boiling over. Drain well.
Cut the tops off the jalapeños and save a few thin rings for the top of the casserole. Seed and dice the rest. Leave seeds in if you want more heat.
Chop or crumble the cooked bacon into pieces.
Return the drained potatoes to the pot. Add the diced jalapeños, pimento cheese, bacon, 1 1/2 cups of the Monterey Jack, and 1/2 teaspoon salt. Stir until combined — the warm potatoes will break down slightly as you mix.
Spread the mixture into a 9x13 casserole dish.
Sprinkle the reserved 1/2 cup Monterey Jack evenly over the top and scatter the jalapeño rings across the surface.
Bake at 375°F for about 20 minutes, until hot through and the cheese is melted. Let stand a few minutes before serving.