Preheat the oven to 375°F (190°C). Lightly grease a loaf pan or baking dish.
In a large mixing bowl, combine the ground beef, egg, milk, breadcrumbs, ketchup, Worcestershire sauce, garlic powder, onion powder, salt, and pepper.
Add the shredded cheddar cheese and crumbled bacon. Mix until just combined—do not overmix.
Shape the mixture into a loaf and place it in the prepared pan.
Bake for 50–60 minutes, or until the internal temperature reaches 160°F (71°C).
Optional: Brush the top with ketchup or barbecue sauce during the last 10 minutes of baking.
Let rest for 5–10 minutes before slicing. Serve warm.