1. Start by cooking the bacon until crispy, then let it cool and crumble it into small pieces. Set aside.

2. In a large bowl, gently mix together the ground beef, crumbled bacon, panko breadcrumbs, and milk.

3. In a separate bowl, whisk together the egg, diced onion, minced garlic, Worcestershire sauce, Dijon mustard, smoked paprika, garlic powder, and onion powder.

4. Pour the wet mixture into the meat mixture, season with salt and black pepper, and gently combine until just mixed.

5. Take a small handful (2–3 tablespoon) of the meat mixture, flatten it in your hand, place a cube of cheddar cheese in the center, then bring the edges up and around the cheese, sealing it tightly. Roll into a smooth shape.

6. Preheat your oven to 400°F and line a baking sheet with parchment paper. Arrange the meatballs with space between them and bake for 20-25 minutes until internal temperature reaches 160°F.

7. Alternatively, heat 1 tablespoon of oil in a skillet over medium heat. Brown the meatballs on all sides for about 8-10 minutes, then reduce heat, cover, and cook for an additional 5-7 minutes until internal temperature reaches 160°F.