Make the Dough
In the bowl of a stand mixer, combine the warm water, sugar, and yeast. Let stand for 5 to 10 minutes until foamy.
Add the room temperature water and salt.
Using the dough hook attachment, gradually add the flour one cup at a time until a soft dough forms.
Knead on medium low speed for 8 to 10 minutes until the dough becomes smooth and elastic.
Transfer the dough to a lightly greased bowl, cover, and let rise for 1 hour or until doubled in size.
Prepare the Filling
In a medium bowl, combine the minced pickled jalapeños, minced orange sweet pepper, and poppy seeds. Reserve the hot dogs separately.
Assemble the Kolaches
Divide the dough into 12 equal portions.
Flatten each portion into a small oval.
Place about 2 tablespoons of the jalapeño mixture in the center of the dough.
Add one hot dog half on top of the filling.
Wrap the dough around the filling and pinch the seams tightly closed.
Place each kolache seam side down on a parchment lined baking sheet.
Top the kolaches with any remaining jalapeño mixture.
Cover loosely and allow to rise for 20 minutes.
Bake
Bake at 400°F for 13 minutes or until lightly golden brown.
Make the Queso Blanco
While the kolaches bake, add the heavy cream to a small saucepan over low heat.
Gradually whisk in the White American cheese until completely melted and smooth.
Stir in the undrained green chilies and salt.
Add additional heavy cream as needed until the queso reaches your desired consistency.
Serve warm alongside the kolaches for dipping.