Cut your bacon into small pieces and place it in a large skillet (I like to use a cast-iron skillet). Cook the bacon over medium heat, stirring often, until the bacon is golden brown and crispy. Then transfer the bacon to a paper towel-lined plate and set aside.
Drain most of the bacon grease out of the pan, leaving roughly 2 tbsp still in the pan. Discard the remaining bacon grease or save it for later use.
Add the chopped onions and tomatoes to the bacon grease, and cook, stirring often, until the tomatoes have broken down and the onions have started to caramelize.
Reduce the heat, and continue cooking until most of the liquid from the tomatoes has evaporated.
Then add the ketchup, yellow mustard, and chopped pickled jalapenos, stir to combine, and cook until the mixture is heated through.
Add the bacon back to the pan and mix well. Taste, and season with salt and pepper if needed.
Finally, add the shredded cheddar cheese, and mix just until the cheese is melted, then remove the pan from the heat.
Now, at this point, you can allow the bacon mixture to cool to room temperature. Then transfer it to an airtight container and place it in the fridge until ready to use.
OR you can serve your bacon, onion hot dog topping immediately. To serve, place your hot dogs on choice into your prepared hot dog buns and top each one with a generous amount of your bacon onion topping. This recipe will make enough topping for 6-8 hot dogs.
Enjoy!