Preheat your oven to 375°F.
In a medium bowl, mix together the softened cream cheese, Mexican cheese, onion powder, garlic salt, and a dash of chili powder. Stir until combined and smooth.
Spoon a few tablespoons of this mixture into each of the halved and seeded jalapeno peppers.
Unroll the crescent rolls onto a large cutting board. Divide the dough into two triangles to form rectangles by pressing the perforations together.
Continue this with the remaining triangles until you've created four rectangles. Using a pizza cutter, cut each triangle into ten strips lengthwise, resulting in a total of forty pieces of dough.
Wrap strips of dough around each filled jalapeno pepper to resemble “bandages.”
Place the wrapped peppers onto an ungreased cookie sheet, cut side facing up.
Whisk the egg and water together in a small bowl to create an egg wash. Brush this mixture onto the tops of the wrapped peppers.
Bake in the preheated oven for 14 to 16 minutes or until golden brown on top.
Once done, remove from the oven and add the candy eyeballs in the space at the top of each pepper. Serve warm and watch them disappear!
