Preheat your oven to 400°F (200°C). Lay 8–10 slices of bacon on a baking sheet lined with parchment paper or cook in a skillet over medium heat. Bake for 20–27 minutes or sauté until crispy, turning occasionally. Once cooked, set aside on a paper towel to drain excess grease. Allow to cool before cutting into small pieces.

In a large pot over medium heat, melt 1 tablespoon of butter or olive oil. Add the diced onion and sliced carrots, stirring often for about 10–15 minutes, until the vegetables are tender and starting to caramelize.

Pour in 4 cups of chicken broth into the pot with the sautéed onions and carrots. Increase the heat to bring the mixture to a gentle simmer, which should take about 5 minutes.

Lower the heat to medium-low and gradually stir in 2 cups of heavy cream, along with 1 to 2 teaspoons of salt, 1 teaspoon of pepper, 1 teaspoon of garlic powder, ¼ teaspoon dried thyme, and ½ to 1 teaspoon of red chili flakes. Allow to simmer gently for about 5 minutes.

Gradually stir in 2 cups of shredded cheddar cheese, adding it in small batches until fully melted and smooth, about 3–5 minutes.

Gently mix in 16 ounces of gnocchi, stirring until well coated in the creamy broth. Cook for about 2 minutes, or until the gnocchi float to the top and are tender.

Finally, stir in the crispy bacon pieces. Let the soup heat through for another minute before ladling it into bowls. Serve hot, with optional toppings.