In a medium bowl, combine softened cream cheese, shredded sharp cheddar cheese, garlic powder, smoked paprika, and black pepper. Blend until creamy and well combined. Set aside.

Pat jalapeño pickles dry with a paper towel. Fill each pickle with the cheese mixture using a small spoon or piping bag.

Cut bacon slices in half and wrap each filled pickle with a half slice of bacon. Secure with a toothpick if needed.

Set up three shallow bowls for flour, beaten eggs, and panko breadcrumbs. Prepare a plate for the coated pickles.

Dip each bacon-wrapped pickle into flour, then roll it in beaten eggs, and finally coat it with panko breadcrumbs.

Heat vegetable oil in a deep skillet until it reaches 350°F. Fry the pickles in batches for about 3-4 minutes until crispy.

Remove the fried pickles with a slotted spoon and let drain on paper towels. Serve hot with dipping sauce.