Cook the bacon according to package directions. Place onto paper towels to drain the grease. Allow the bacon to cool. Coarsely chop into small bits. Set aside.
Heat the soybean oil in small pot or fryer to 375 degrees F.
Roll out the biscuit dough. Using a pastry cutter or the top of a small glass, cut out 2-inch diameter circles. Using a plastic bottle cap, cut out small circles from the center of your 2-inch circles. Carefully set the dough into the hot oil. Cook on one side for 20 to 30 seconds, then flip to cook the other side for 20 to 30 seconds. Donuts should be golden brown when done cooking. Scoop out the donuts and place them on a draining rack or paper towels to absorb some of the grease.
Scoop 1 teaspoon jalapeno jam onto each donut. Place the cream cheese frosting into a pastry bag or squeezable bottle. Squirt a generous dollop onto each donut, on top of the jalapeno jam. Top with a spoonful of bacon bits.
Cook's Note: For vegetarians, try using soy-based bacon bits instead.
This recipe was provided by a professional chef or restaurant and may have been scaled down from a bulk recipe. The Food Network Kitchens chefs have not tested this recipe, in the proportions indicated, and therefore, we cannot make any representation as to the results.