Step 1: Cook the bacon by adding diced bacon to a large pot over medium heat and cook until crispy, about 6-8 minutes. Remove and let cool, leaving the fat in the pot.

Step 2: In the same pot, add 2 tablespoons of butter or olive oil, then add the diced onions and sliced carrots. Sauté for 10-15 minutes until tender.

Step 3: Pour in 4 cups of chicken broth and bring to a gentle simmer for about 5 minutes.

Step 4: Reduce heat to medium-low and stir in 2 cups of heavy cream, 1 teaspoon of salt, 0.5 teaspoon of pepper, 1 teaspoon of garlic powder, 1 teaspoon of dried thyme, and a pinch of red chili flakes. Simmer for about 5 minutes.

Step 5: Gradually add 2 cups of grated cheddar cheese, stirring continuously until melted and smooth.

Step 6: Stir in 16 ounces of gnocchi and cook for 2-3 minutes until they float. Adjust seasoning with salt and pepper, and mix in reserved bacon before serving.