Cut potatoes into 1-inch cubes. In a large pot, bring water to a boil and season with 1 tsp of salt. Gently drop the cubed potatoes into the boiling water. Boil for about 10 minutes, or until you can stick a fork in easily but it still hold its shape. Drain off excess water and let potatoes dry and cool.
In a pan, cook bacon for about 3 minutes on each side, or until browned and crispy. Let cool and chop into bite-size pieces.
Heat 1 1/2 tbsp of olive oil and melt 2 tbsp of unsalted butter over medium high heat in a large pan. Once the melted butter starts bubbling, add in the potatoes and spread them out flat on the pan. Season with salt and pepper to taste. Let cook and brown for about 3-4 minutes, then turn the potatoes and let brown for another 3-4 minutes. Repeat by continuously turning the potatoes until all sides are golden brown and crispy, about 20 to 30 minutes. Add about 1/2 tbsp of butter every 8-10 minutes if the potatoes look dry to avoid them from burning and crisp up faster. Remove from heat.
In a large pan, heat 1 1/2 tbsp of olive oil over medium high heat. Add the garlic, onions, and jalapeno and stiry fry until tender and fragrant, about 2 minutes. Add in the potatoes, bacon, and the grape tomatoes into the pan and mix well. Serve with sour cream and top with cilantro and jalapeno peppers.