01 - Preheat oven to 375°F. Position the rack in the center of the oven.
02 - Set a large oven-safe skillet over medium heat. Add the chopped bacon and cook, stirring occasionally, until evenly crisp and the fat has rendered, about 6 to 8 minutes. Transfer the bacon to a plate lined with paper towels using a slotted spoon, leaving the drippings in the skillet.
03 - Season the chicken breasts generously on both sides with salt, black pepper, and smoked paprika. Place the chicken in the hot bacon drippings and sear for 3 to 4 minutes per side until a deep golden crust forms. The chicken will not be fully cooked through at this stage. Remove and set aside on a plate.
04 - In the same skillet with the residual drippings, add the diced onion and sliced mushrooms. Sauté over medium heat for about 5 minutes until the vegetables are softened and the mushrooms have released their moisture. Add the minced garlic and cook for 1 additional minute until fragrant.
05 - Pour in the chicken broth to deglaze the pan, using a wooden spoon to scrape up any browned bits from the bottom. Stir in the heavy cream and bring the mixture to a gentle simmer. Add the shredded cheddar cheese and stir continuously until fully melted and smooth. Return the crisp bacon to the skillet and stir to combine.
06 - Nestle the seared chicken breasts into the sauce, spooning the creamy mixture over the top of each piece. Transfer the skillet to the preheated oven and bake for 15 to 18 minutes, until the chicken reaches an internal temperature of 165°F and is cooked through.
07 - Remove from the oven and let rest for 2 to 3 minutes. Garnish with the sliced green onions and freshly chopped parsley. Serve immediately while hot.