In a medium bowl, mix the cream cheese, cheddar cheese and bacon bits.
Slice each jalapeno in half, lengthwise. Then, using a small spoon, scrape and remove all the seeds
Spoon the cream cheese mixture into the jalapeno pepper halves.
Place two bowls next to each other. In the first bowl, put flour. In the second bowl, milk. Dip the stuffed jalapenos first into the milk then into the flour, making sure they are well coated with each. Allow the coated jalapenos to dry for about 10 minutes. Then dip the jalapenos in milk again and coat them with the breadcrumbs. Allow them to dry, then repeat the step one more time.
In a medium skillet, heat the oil and deep fry the coated jalapenos 2 to 3 minutes each, until golden brown.