Preheat your oven to 425 F. Line a large baking sheet with parchment paper or lightly grease it with cooking spray.
In a large mixing bowl, toss the little potatoes & spice packet with olive oil, smoked paprika, garlic powder, cayenne pepper, salt & black pepper. Mix well to ensure the potatoes are evenly coated.
Spread the seasoned potatoes out in a single layer on the prepared baking sheet. Roast the potatoes in the preheated oven for 30-35 minutes, flipping them halfway through, until they are cooked through.
While the potatoes are roasting, cook the bacon in a large skillet over medium heat until crispy. Transfer the cooked bacon to a paper towel-lined plate to drain, then crumble it into small pieces. Reserve about 1 tablespoon of the bacon grease in the skillet & discard the rest.
Thinly slice the onion. In the same skillet with the reserved bacon grease, add the butter & sliced onions. Cook over medium-low heat, stirring frequently, for 10-12 minutes, or until the onions are soft & caramelized. Remove from heat & set aside.
Once the potatoes are roasted, remove the baking sheet from the oven & top them with the crumbled bacon & caramelized onions. Lay the slices of smoked gouda cheese evenly over the potatoes. Return the baking sheet to the oven for 2-3 minutes, just until the cheese melts.
Remove the potatoes from the oven and transfer them to a serving dish. Serve immediately.