Step 1: Make the Meatballs
In a large bowl, combine the ground meat, breadcrumbs, egg, Parmesan cheese, garlic powder, onion powder, salt, and pepper. Mix until well combined. Roll the mixture into small meatballs, about 1 inch in diameter. Heat olive oil in a large skillet over medium heat. Brown the meatballs on all sides until cooked through, then set aside.

Step 2: Sauté Aromatics
In a large pot, heat olive oil over medium heat. Add the chopped onion and sauté until translucent, about 3–4 minutes. Add the minced garlic and diced jalapeños, cooking for another 2 minutes until fragrant.

Step 3: Build the Broth
Pour in the chicken or vegetable broth and bring to a gentle simmer. Add smoked paprika, chili powder, salt, and pepper. Stir well to combine.

Step 4: Add the Creamy Base
Reduce the heat to low and stir in the cream cheese until fully melted and incorporated. Slowly pour in the heavy cream, stirring constantly to avoid curdling. Add shredded cheddar cheese, stirring until melted and smooth.

Step 5: Combine Meatballs and Soup
Gently place the cooked meatballs into the soup. Let them simmer in the creamy broth for about 10 minutes to absorb the flavors.

Step 6: Garnish and Serve
Ladle the soup into bowls and garnish with freshly chopped parsley. Serve with crusty bread or tortilla chips for dipping.