Fry diced bacon in a large pot over medium heat until crispy, about 5-7 minutes. Remove and set aside, leaving drippings in pot.
Add ground sausage to the pot and cook until browned, breaking into small pieces, about 5 minutes. Remove and set aside with bacon.
Melt butter in the pot. Add chopped onion, carrots, and garlic, sautéing until softened, about 4-5 minutes.
Sprinkle flour and smoked paprika over vegetables, stirring until combined. Cook for 1 minute, then gradually stir in chicken broth, milk, and cream until smooth and slightly thickened.
Bring mixture to a gentle simmer. Stir in gnocchi and cook until they float to the top and are tender, about 3-5 minutes.
Stir in cheddar cheese until melted and creamy. Add back crispy bacon and browned sausage, mixing everything together.
Ladle soup into bowls and garnish with fresh parsley. Serve hot.
Notes
Use freshly shredded cheddar for smoother melting. Pre-shredded cheese contains anti-caking agents that affect texture.
Don’t overcook gnocchi or they’ll become mushy. They’re done when they float to the surface.
For lighter version, substitute turkey bacon and use half-and-half instead of heavy cream.
Not recommended for freezing due to dairy content. Store refrigerated for up to 3 days.