In a large pot over medium heat, cook the bacon until crispy, about 6-8 minutes. Remove bacon and drain on a paper towel.

In the same pot, add 2 tablespoons of butter or olive oil. Add diced onion and sliced carrots, sautéing for 10-15 minutes.

Pour in 4 cups of chicken broth and bring to a gentle boil. Simmer for about 5 minutes.

Stir in 2 cups of heavy cream or half-and-half, 1-2 teaspoons of salt, 1 teaspoon of pepper, garlic powder, thyme, and red chili flakes. Simmer for 5-7 minutes.

Gradually add 2 cups of grated cheddar cheese, stirring continuously until melted and smooth, about 3-4 minutes.

Stir in 16 ounces of gnocchi and cook for 2-3 minutes until they float and are tender. Add chopped bacon back into the soup.