Cook the Bacon In a large pot or Dutch oven, cook the bacon over medium heat until crispy. Remove and set aside on a paper towel–lined plate. Once cooled, chop into bite-sized pieces. Leave a small amount of bacon fat in the pot — that’s flavor gold.
Sauté the Vegetables Add the butter or olive oil to the same pot. Toss in onions and carrots, cooking for about 10–12 minutes until softened and lightly golden. Let them soak up that smoky bacon essence.
Add the Broth and Simmer Pour in the chicken broth and bring it to a gentle simmer. Let the flavors mingle for 5–7 minutes while you breathe in that comforting aroma.
Add Cream and Spices Reduce heat to medium-low. Stir in the cream, salt, pepper, garlic, thyme, and red chili flakes. Simmer slowly — don’t boil — until slightly thickened.
Melt in the Cheese Add cheddar cheese gradually, a handful at a time, stirring until fully melted and smooth. The key is patience here; rushing it can cause clumping. You want silky perfection.
Add the Gnocchi and Bacon Gently stir in the gnocchi and cook for 2–3 minutes, just until they float. Return the chopped bacon to the pot, saving a little for garnish. Taste, adjust salt and pepper, and serve hot.