Heat the oven to 400°F. Lightly grease 8 cups of a standard muffin pan.
In a large bowl, combine the ground beef, egg, breadcrumbs, onion, milk, garlic powder, smoked paprika, salt, and black pepper. Mix gently until everything is evenly combined, taking care not to compact the meat.
Divide the mixture into 8 portions. Flatten each portion in your palm, place 1 cheddar cube in the center, and fold the meat around it so the cheese is fully enclosed.
Wrap one slice of bacon around each meatloaf portion. Place each one seam-side down in a muffin cup. Brush the tops with half of the barbecue sauce.
Bake for 20 minutes. Carefully spoon off any excess fat from the muffin cups, then brush the tops with the remaining barbecue sauce.
Return the pan to the oven and bake for 8 to 12 minutes more, until the bacon is browned and the centers reach 160°F on an instant-read thermometer. Rest the muffins in the pan for 5 minutes before serving.