In a large pot over medium heat, add diced bacon and cook for 5–7 minutes until crispy and golden. Use a slotted spoon to remove the bacon, leaving the rendered grease in the pot.

Add chopped yellow onion to the pot and sauté for about 5 minutes until softened. Add minced garlic and cook for another minute until fragrant.

Sprinkle all-purpose flour over the onion and garlic mixture, stirring constantly for 1–2 minutes to cook off the raw flour taste.

Gradually whisk in chicken broth, ensuring no lumps remain, and bring to a gentle simmer over medium heat for about 5 minutes.

Stir in whole milk, dried thyme, dried rosemary, and black pepper and simmer for another 5 minutes.

Lower the heat and stir in sharp cheddar cheese until melted, then gently fold in heavy cream.

Add potato gnocchi and cook according to package instructions, usually around 2–4 minutes.

Once cooked, stir in reserved crispy bacon and adjust seasoning with salt and pepper.