This is the world's best homemade chili with bacon, ground beef, beans, and the perfect blend of spices. Everyone will go crazy for this classic chili recipe that is awesome topped with shredded cheese, sour cream, avocado, and some crumbled bacon. It's a game day favorite for any chilly winter day!
Cook bacon according to your favorite method. I prefer to bake mine on a wire rack on top of a sheet pan in the oven at 375ºF for 15 minutes. If you prefer a different method, use that. However you cook the bacon, reserve 2 tablespoons of bacon grease for the next step. After the bacon has cooled, chop it coarsely and reserve ¼ cup of the chopped bacon to use as a garnish.
Heat a large dutch oven over medium-high heat. Add the 2 tablespoons of bacon grease to the pot then add the chopped onion. Cook until translucent and slightly browned, about 10 minutes.
Add garlic to the pot and cook for 30 seconds or until fragrant.
Add the ground beef to the pot, breaking it up with a wooden spoon or spatula. Once the beef is mostly browned, add the brown sugar, chili powder, paprika, cumin, onion powder, black pepper, and salt and mix well.
Bring chili to a boil and cook for 5 minutes, stirring continuously.
Reduce heat and simmer for 30 minutes or longer, uncovered, stirring occasionally. This step isn't absolutely necessary, but the flavor of the chili will be much nicer if you do it.
Top with sour cream, shredded cheddar cheese, diced avocado, and a sprinkle of chopped bacon, and serve hot.