Heat oil in a large skillet over medium heat. Add spam, bell pepper, onion, potatoes, chili powder, salt, and pepper. Add a few dashes of jalapeño sauce if using.
Mix everything together with a spatula, then cover tightly with foil. Cook for 5 minutes.
Remove foil, flip the mixture with your spatula, cover again, and cook another 5 minutes. Repeat this process for 30 minutes total. (If the mixture starts sticking, add 3-4 tablespoons water to create steam that helps cook the potatoes.)
Test doneness by piercing a potato piece with a fork - it should go through easily. The potato edges should be breaking down slightly.
Divide the mixture among 6 plates. Tear 2 cheese slices into strips over each serving.
Microwave each plate for 45 seconds on high to melt the cheese. Serve immediately with additional jalapeño sauce on the side.
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