Oil a 12-inch-wide by 3-inch-deep glazed pottery or other ovenproof casserole and set aside.
Saute the sliced chorizo in a large skillet until lightly browned all over. You may need to do two batches. Drain itt on paper towels. Discard the rendered fat in the skillet and wipe it out with paper towels.
In the bowl of a food processor, finely mince the garlic, then add the onions and pulse five or six times.
Heat the olive oil in the skillet over medium heat and saute the onion and garlic for 5 minutes, stirring occasionally. Add the peppers and continue to saute another 5 minutes. Remove the skillet from the heat and add oregano through the hominy (using 2 tablespoons of the cilantro), stirring gently to combine. Add the cream,, 1 cup of the cheddar, and all the pepper jack cubes. Stir to mix well.
At this point the mixture can be put into a bowl, covered, and refrigerated until you want to bake the casserole, or you can bake it right away.
To bake, preheat the oven to 400 degrees Fahrenheit. Transfer the mixture to the oiled casserole, cover with foil, and bake 20 minutes. Remove the casserole from the oven, discard the foil, and top the casserole with the remaining cheddar. Bake, uncovered, an additional 10 minutes, or until the cheese is melted. Scatter the remaining cilantro on the surface before serving. Serve hot from the baking dish.