Preheat oven to 400F. Place bacon on a parchment lined baking sheet and bake for 15-20 minutes or until almost done. Allow to drain on a paper towel and then chop into small pieces. Set aside.
Add the onion in a food processor and process until onion is finely chopped. Combine Bacon and onion. Spoon bacon and onion mixture into large bowl. Add ground beef, breadcrumbs, parsley, egg, chili powder, and salt. Stir to combine. Scoop out the meat mixture and roll into balls using your palms, should make about 24 1 inch meatballs. Heat oil in large saucepan over medium heat. Place the meatballs into the sauce pan and cook, turning every couple minutes to ensure all sides cook evenly. Cook for about 8-10 minutes until fully cooked. Remove the meatballs and set aside. Remove the pan from the heat and pour out the excess grease. Add the barbecue sauce, water and bourbon to the saucepan and return to heat. Stir to mix the sauce together. Add in the meatballs and allow them to simmer in the sauce for at least 10 minutes. Enjoy!