Preheat the oven to 350°F (175°C).
Grease a 9x13-inch baking dish with butter.
Cook the bacon in a skillet until crispy, then transfer to a plate lined with paper towels to drain. Once cooled, crumble into small pieces.
Cut bread into 1-inch cubes and set aside.
In a large mixing bowl, whisk together eggs, milk, salt, black pepper, garlic powder, and smoked paprika until fully combined.
Spread the cubed bread evenly in the prepared baking dish.
Sprinkle crumbled bacon over the bread.
Add 1 cup of shredded cheddar cheese evenly over the bacon.
Pour the egg mixture evenly over the bread, bacon, and cheese, ensuring all the bread is soaked.
Sprinkle the remaining 1 cup of cheese on top.
Let the casserole sit for 15 minutes to allow the bread to absorb the egg mixture.
Bake in the preheated oven for 40-45 minutes, or until the top is golden brown and the eggs are set.
Remove from the oven and let the casserole rest for 5-10 minutes before slicing and serving.