Cut bacon into bite-sized pieces and cook in a large pot or Dutch oven over medium-high heat until crispy, about 8-10 minutes. Remove bacon with a slotted spoon and set aside, leaving about 1 tablespoon of bacon fat in the pot (drain excess if needed). While bacon cooks, cut chicken breasts into bite-sized chunks and measure out your broth, cream cheese, and cheeses so everything is ready when you need it.

Return the pot with bacon fat to medium-high heat and add the chicken chunks. Cook for 3-4 minutes, stirring occasionally, until the chicken is mostly cooked through (it doesn't need to be fully cooked since it will finish cooking in the broth). Add the ranch seasoning mix and garlic powder, stirring well to coat the chicken evenly. This toasts the seasonings slightly and distributes the flavor throughout the protein.

Add the penne and chicken broth to the pot with the seasoned chicken. Stir well to combine and bring to a boil over medium-high heat, about 2-3 minutes. Once boiling, reduce heat to medium, cover with a lid, and simmer for 15-20 minutes, stirring occasionally to prevent sticking and ensure even cooking. The pasta will cook directly in the broth, absorbing all those seasoned flavors. I find stirring every 4-5 minutes prevents the pasta from clumping on the bottom.

Remove the pot from heat and stir in the cream cheese until fully melted and smooth—the residual heat will melt it easily. Add the cooked bacon from Step 1 and 1.5 cups of shredded cheddar cheese, stirring constantly until all the cheese is melted and the sauce is creamy and cohesive. This creates a rich, cheesy sauce that coats every piece of pasta.

Top the pasta with the remaining 0.5 cups of cheddar cheese. For a stovetop finish, cover the pot and cook over very low heat for 30 seconds until the cheese just begins to melt. For a more indulgent finish with slightly crispy edges, transfer the pot to a preheated broiler and broil for 4-5 minutes until the cheese is bubbly and lightly golden. Either method works beautifully—I prefer the broiler method when I have time because the cheese gets a little textured on top.

Remove from heat and sprinkle with freshly chopped parsley. Divide into bowls or plates and serve immediately while the cheese is still melted and creamy.