1. Cook the bacon until crisp (see notes on best methods below). After the bacon has cooled, dice it into small pieces and keep it aside.
2. In a large pot over medium heat, add the butter (or olive oil). Then add the diced onion and sliced carrots. Sauté until the vegetables are soft and aromatic, approximately 10 to 15 minutes.
3. Add the chicken broth and let the mixture come to a gentle simmer.
4. Once the vegetables are soft, reduce heat to medium - low and stir in the heavy cream or half - n - half, along with salt, pepper, garlic powder (or minced garlic), dried thyme, and red chili flakes. Let the mixture simmer gently—do not let it boil, as the cream may separate when the cheese is added.
5. Gradually add the grated cheddar cheese in increments, stirring each time so it melts smoothly and doesn’t clump.
6. Stir in the gnocchi and cook for about 2 minutes (or until the gnocchi are heated through and tender). Taste and adjust seasoning (salt and pepper) as needed.
7. Finally, add the chopped bacon pieces, reserving a few for garnish if you like. Serve the soup in bowls, topped with remaining bacon pieces, extra grated cheddar, and optionally chopped green onions.

Cooking the bacon – suggestions:

• Oven method: Preheat the oven to 400 °F. Line a baking sheet with foil and lay out the bacon in a single layer. Bake for about 20–27 minutes depending on desired crispiness (25–27 minutes is typical). Transfer to a paper - towel - lined plate to drain.
• Skillet method: Cook over medium heat in a skillet until crisp, turning occasionally. Drain on paper towels.