Let cream cheese sit at room temperature to soften.
Wash mushrooms and remove stems, save and chop stems. Chop shallots and both peppers and put aside.
In large saucepan cook bacon until crispy and then remove, saving grease. Add chopped veggies and garlic to saucepan and saute until tender, then allow to cool.
Crumble bacon into bits and add to veggie mixture. Add cream cheese to mixture. Using teaspoon, stuff mushroom caps heaping full with mixture. Gently roll into breadcrumbs to coat.
Preheat oven to 375 °F. Add stuffed mushrooms to baking pan big enough to put all mushrooms in. Add water to bottom of pan to cover them 1/4 way and cook uncovered 20-25 minutes.