Preheat the oven to 375°F (190°C).
In a large skillet over medium heat, cook the bacon slices until crispy. Remove bacon and set aside on paper towels to drain. Reserve 1 tablespoon of bacon fat in the skillet.
Season the chicken thighs with salt, black pepper, garlic powder, onion powder, and smoked paprika.
Add the butter to the reserved bacon fat in the skillet. Place the chicken thighs skin-side down and sear for 5 minutes until the skin is golden and crispy. Flip and cook for another 3 minutes. Remove from heat.
Chop the cooked bacon into bite-sized pieces.
In a mixing bowl, combine the heavy cream, shredded cheddar cheese, grated Parmesan cheese, and chopped bacon. Stir well.
Place the seared chicken thighs in a casserole dish, skin-side up. Pour the cheese and bacon cream mixture evenly over the chicken.
Bake uncovered in the preheated oven for 35 minutes or until the chicken is cooked through and the cheese mixture is bubbly and golden.
Remove from the oven and let rest for 5 minutes before serving.