- Dice the bacon into bite-sized see pieces and add it to a large pot. Turn the heat to medium and cook until the bacon is crispy. 
- Remove the bacon from the pot with a slotted spoon, leaving the bacon grease behind in the pot, to a paper towel lined plate and let drain. 
- Add the flour, garlic powder, and onion powder to the bacon grease left behind in the pot. Whisk constantly for 2 minutes to cook the flour a bit. 
- Pour in the chicken broth, whisking constantly, until smooth. Bring to a boil. 
- Once the soup is boiling, add the gnocchi to the pot and cook according to package directions, around 2-3 minutes for refrigerated gnocchi and 3-4 minutes for shelf stable. 
- While the gnocchi is boiling, heat the cream cheese in the microwave for 20-30 seconds. It should be very soft and melty. If it’s too cold it will clump in the soup. 
- Once the gnocchi is done cooking, turn the heat to low and stir the cream cheese and cheddar into the soup. Continue stirring until the cheese has melted fully. 
- Turn the heat off, add half of the bacon to the pot along with half of the green onions. Taste and season with salt and pepper. 
- Dish into bowls and sprinkle the top with the remaining bacon and green onion, along with some extra cheddar cheese, if desired.