Mix cream cheese and shredded cheese in a bowl. Spoon a few tablespoons of this mixture into the pepper halves.
Place milk, flour and bread crumbs in separate bowls. Dip jalapenos in milk, then flour, then back in milk. Dip peppers in bowl with bread crumbs making sure it is all coated. (To make sure they are coated, re-dip in milk and back in breadcrumbs)
Heat oil in a skillet on medium-high heat. Fry jalapeno peppers for a few minutes or until golden brown.
Let drain on a paper towel-lined plate. Serve warm with ranch or other dipping sauces.