For cheese sauce, in a small saucepan, melt butter or margarine. Stir in flour and black pepper. Add milk all at once. Cook and stir over medium heat until thickened and bubbly; cook and stir for 1 minute more. Reduce heat to very low. Stir in cheese and sliced jalapeno peppers until cheese melts. Cover; keep warm.
To poach eggs, add water to half-fill a 12-inch skillet. Bring water to boiling. Reduce heat to simmering. Break 1 egg into a small cup. Carefully slide egg into simmering water, holding the lip of the cup as close to the water as possible. Repeat with remaining eggs, allowing each egg an equal amount of space. Simmer eggs, uncovered, for 4 to 6 minutes or until yolks are just set.
Meanwhile, in a large skillet, heat Canadian bacon slices until warm.
To assemble, place 2 toasted muffin or bagel halves, cut sides up, on each plate. Top each half with a slice of Canadian bacon. With a slotted spoon, place a poached egg on top of each. Season with salt and pepper. Top with cheese sauce and sour cream. Garnish with olives and chili peppers. Makes 4 servings.
Sauce may appear slightly curdled if you use natural Monterey Jack cheese. For a smoother looking sauce, choose process American cheese.