Fry the bacon until almost crisp; remove from skillet and drain all but a couple of tablespoons bacon grease. Crumble the bacon and set aside.
Add onion to skillet and cook for a couple of minutes. Pour in hominy and stir for a couple of minute until warm. Add cheese, chilies, jalapenos (if using), and bacon and stir until cheese is melted. Remove from heat.
Pour mixture into a large baking pan and sprinkle with a little more cheese, bacon, and green chilies, if desired.
Bake at 350 for 15 minutes, or until hot and heated through.