In a 9- by 13-inch pan, combine jelly, vinegar, mustard, and honey. Put in a 375° oven and occasionally whisk until jelly is melted and sauce blended, 5 to 10 minutes.
Turn chicken over in jelly sauce in pan, arranging pieces side by side.
Bake in a 375° oven for 15 minutes.
Pull 4 chilies open on 1 side and lay flat. Put 1 chili over each chicken piece. Reserve extra chilies for other uses. Lay cheese on chili and chicken, covering evenly; baste with jelly sauce.
Continue to bake chicken until it is no longer pink in thickest part (cut to test), 5 to 10 minutes more.
Put chicken on plates and spoon sauce around portions. Season to taste with salt and pepper.
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