Preheat smoker to 225F
While smoker is heating, crosshatch and season block of cream cheese to allow for more smoke flavor via increased surface area, smoke for 25-30 minutes.
While cream cheese is smoking, prepare jalapeños. Remove top and using a corer tool, pull out the core and remove seeds the best you can. Blanch jalapeños by bringing a pot of water to boil, and add jalapenos for 2 minutes. This will soften the jalapeños. Afterward, place them in an ice bath for 5 minutes.
When cream cheese is done smoking, add to a mixing bowl with cheddar cheese, and bacon bits. Mix well to combine, and place the cream cheese mixture into a piping bag.
Pipe the cream cheese mixture into the jalapeños until full. You'll likely need to tamp down the cream cheese to fill in gaps inside the pepper. Re-fill if necessary.
Heat frying oil to 350F
Batter the stuffed jalapeños, and place them in the hot oil for 5-7 minutes, until golden brown. Remove and place on paper towel lined plate to absorb excess oil. Allow to rest for 10-15 minutes before serving to avoid a burnt mouth.