Preheat your oven: Start by preheating your oven to 425°F (220°C). Line a baking sheet with parchment paper for easy cleanup.
Mix dry ingredients: In a large mixing bowl, combine the flour, baking powder, salt, garlic powder, and paprika. Blend well to ensure even distribution of the flavors.
Cut in the butter: Add the cold, cubed butter to the flour mixture. Using a pastry cutter or your fingers, work the butter into the flour until the mixture resembles coarse crumbs.
Add cheese and bacon: Stir in the shredded cheddar cheese and crumbled bacon until they're evenly distributed throughout the flour mixture.
Pour in the milk: Gradually add the milk to the biscuit mixture. Stir gently with a wooden spoon or spatula until the dough just comes together. Be careful not to overmix.
Shape the biscuits: Turn the dough out onto a lightly floured surface. Knead it gently a few times until it holds together. Pat the dough into a rectangle about 1-inch thick. Use a biscuit cutter or a glass to cut out biscuits. If you prefer a more rustic look, you can simply shape the dough by hand.
Bake: Place the shaped biscuits on the prepared baking sheet. Bake in the preheated oven for 12-15 minutes, or until the tops are golden brown.
Serve: Remove the baking sheet from the oven and let the biscuits cool slightly before serving. Sprinkle with chopped chives for a pop of color and additional flavor if desired.