Heat a large dutch oven over medium-high heat. Remove casings from sausage. 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.
Add chili powder and the next 7 ingredients (chili powder through bay leaves), and cook for 1 minute, stirring constantly. Stir in wine, tomatoes, and kidney beans; bring to a boil. Cover, reduce heat, and simmer 1 hour, stirring occasionally.
Uncover and cook for 30 minutes, stirring occasionally. Discard the bay leaves. Sprinkle each serving with cheddar cheese.
Note: Like most chilis, this version tastes even better the next day.