Begin by preparing the cheese. If using block cheddar, slice into 12 uniform chunks. Set aside for stuffing.
In a sizable mixing bowl, blend together the ground beef, beaten egg, breadcrumbs, milk, minced garlic, onion powder, smoked paprika, salt, and ground black pepper. Mix just until the ingredients are fully incorporated, avoiding overmixing to keep the meat tender.
Divide the seasoned meat blend into 12 even portions. Flatten each portion in your palm, nestle a piece of cheddar in the center, then encase the cheese entirely with the beef to form a round meatball.
Take one strip of bacon and wrap it around each meatball, securing the ends beneath the ball or using a toothpick to hold it in place.
Preheat your oven to 375°F (190°C) and prepare a rimmed baking sheet by lining it with foil or parchment paper for easy cleanup. Arrange the bacon-wrapped bites evenly on the tray. Using a brush, apply a light coating of barbecue sauce to each one.
Transfer to the oven and bake for 35 to 40 minutes, rotating them halfway through the cooking process, until the bacon is rendered crisp and the beef reaches a safe internal temperature of 160°F (71°C).
Just before serving, brush the warm bacon bombs with an additional layer of barbecue sauce for a glossy finish, if desired. Serve hot.