In a large skillet, cook the bacon in two batches until crisp. Once cooked, remove bacon to paper towels to drain and set aside. Discard the fat reserving 2 Tablespoons in the skillet.
Add the shallots and red onion and cook until soft and caramelized.
Add the garlic and cook 2 minutes.
Add the chili powder, smoked paprika and cumin and cook for 1 minute.
Remove the skillet from the heat and add the bourbon and honey or syrup. Return to heat and bring to a boil.
Add the balsamic vinegar, brown sugar, and water and return to a boil.
Add the reserved bacon and cook for 10 minutes or until thick.
Remove from the heat and cool. (Although we like to leave it chunky, after the jam is cool, you can transfer it to a food processor if you desire a smoother jam.)
Transfer to a jar and keep refrigerated.
Bring to room temperature before serving.