1. Heat a large Dutch oven over medium-high heat.
2. Remove casings from sausage.
3. Add sausage, onion, and the next 4 ingredients (onion through jalapeno) to pan; cook 8 minutes or until sausage and beef are browned, stirring to crumble.
4. Add chili powder and the next 7 ingredients (chili powder through bay leaves), and cook for 1 minute, stirring constantly.
5. Stir in wine, tomatoes, and kidney beans; bring to a boil.
6. Cover, reduce heat, and simmer 1 hour, stirring occasionally.
7. Uncover and cook for 30 minutes, stirring occasionally.
8. Discard the bay leaves.
9. Sprinkle each serving with cheddar cheese.