Preheat the electric smoker to 250°F. Follow the manufacturer’s instructions for adding wood, if needed.

In a large bowl, combine the ground beef, egg, breadcrumbs, onion, milk, salt, black pepper, and garlic powder. Mix gently until just combined.

Shape half of the meat mixture into a compact loaf on a tray or clean work surface. Press the smoked Gouda cubes into the center, keeping them away from the edges. Cover with the remaining meat mixture and pinch the seams closed so the cheese is enclosed.

Lay the bacon slices side by side on a clean surface, slightly overlapping them. Set the loaf across the bacon and wrap the slices around it. Place the loaf seam-side down on a smoker-safe rack or pan.

Smoke until the center reaches 150°F, checking with an instant-read thermometer. Brush the top and sides with half of the BBQ sauce.

Continue smoking until the center reaches 160°F. Brush with the remaining BBQ sauce during the final few minutes, then remove the meatloaf from the smoker.

Rest the meatloaf for 10 minutes before slicing. This helps the loaf hold together and keeps the melted Gouda from running out too quickly.