Preheat a smoker to 250°F. Use a mild wood such as apple or pecan so the smoke complements the Gouda without overpowering it.

In a small bowl, stir the breadcrumbs and milk together. Let them sit for a few minutes, until the crumbs are moistened.

In a large bowl, combine the ground beef, ground pork, egg, breadcrumb mixture, onion, Worcestershire sauce, salt, pepper, and garlic powder. Mix gently until evenly combined, taking care not to pack the meat too tightly.

Lay the meat mixture on a piece of parchment and shape it into a rectangle about 1 inch thick. Place the Gouda log lengthwise down the center. Fold the meat around the cheese and pinch the seam and ends closed so the Gouda is fully enclosed.

Arrange the bacon slices side by side on the parchment. Set the meatloaf seam-side down on the bacon, then wrap the slices around the loaf. Tuck the ends underneath to help keep the bacon in place.

Transfer the loaf to the smoker, seam-side down. Smoke until the center of the meat reaches 160°F on an instant-read thermometer. Check the temperature in the meat, avoiding the Gouda core.

Carefully move the meatloaf to a platter and let it rest for 10 minutes before slicing. This helps the loaf hold together and keeps the melted Gouda in the center.