In a large pot, heat over medium heat and add chopped bacon, cooking until it turns crispy and golden brown, about 5-7 minutes. Use a slotted spoon to remove the bacon, leaving a few tablespoons of rendered fat in the pot for additional flavor. Set the bacon aside on a paper towel to drain.

With the rendered bacon fat still in the pot, add the butter and allow it to melt over medium heat. Stir in the diced onion and minced garlic, cooking until they become soft and fragrant, roughly 3-4 minutes.

Sprinkle the all-purpose flour evenly over the onion and garlic mixture. Stir constantly, cooking for 1-2 minutes to create a roux that thickens your soup.

Gradually whisk in the chicken broth and milk, stirring continuously to prevent lumps from forming. Bring the mixture to a gentle simmer, about 4-5 minutes.

Once the broth mixture is simmering, add the potato gnocchi to the pot. Cook according to the package directions, typically about 2-3 minutes, or until the gnocchi rises to the surface.

Reduce the heat to low, and slowly stir in the shredded cheddar cheese until it's fully melted and incorporated into the soup.

Ladle the hot soup into bowls, and generously top each serving with the reserved crispy bacon and a sprinkle of chopped parsley for freshness.