Preheat the oven to 350°F (175°C). Line a baking sheet with parchment paper and set it aside.
Place the breakfast sausage, softened cream cheese, baking mix, shredded cheddar, and finely chopped jalapeños in a large mixing bowl.
Work the ingredients together by hand until the cheese, peppers, and baking mix are evenly distributed throughout the sausage mixture.
When the mixture appears too dry or does not hold its shape, incorporate milk one tablespoon at a time. Knead thoroughly after each addition and stop once the mixture becomes cohesive.
Portion the mixture into small pieces and roll each portion into a ball measuring approximately 1 to 1½ inches in diameter.
Position the sausage balls in an even layer on the prepared baking sheet, leaving a small amount of space between them.
Bake for 25 minutes, or until the sausage balls are golden, fully cooked, and surrounded by bubbling melted cheese.
Remove the baking sheet from the oven and serve the sausage balls immediately while they remain warm.