Place a large skillet or Dutch oven over medium heat and add the diced bacon. Cook until the fat renders and the bacon becomes crisp, around 7 to 9 minutes. Transfer the bacon to a plate, leaving the rendered fat in the pan.
Into the reserved bacon drippings, add the thinly sliced onion. Sauté for 5 to 7 minutes, stirring intermittently, until it softens and begins to take on a golden hue.
Introduce the chopped cabbage to the skillet. Cook uncovered for approximately 10 to 12 minutes, stirring regularly to ensure even wilting and caramelization.
Once the cabbage has reduced in volume and begun to brown slightly, incorporate the butter, garlic powder, smoked paprika if using, and season generously with salt and pepper. Stir well to evenly distribute the seasonings. Continue cooking for an additional 5 to 10 minutes, or until the cabbage is fully tender with caramelized edges.
Return the crisp bacon pieces to the skillet. If desired, drizzle in the apple cider vinegar and stir for a final minute to meld the flavors.
Serve hot as a side dish or main entrée.