Preheat oven to 350˚F. Spray a 9" x 9" baking dish with nonstick spray. Set aside.
Boil a pot of water and cook gnocchi according to package instructions. Drain and arrange in a single layer at the bottom of the prepared dish.
In a saucepan over medium heat, melt the butter. Stir in garlic and cook until lightly golden, about 1 minute. Whisk in flour until mixture thickens. Add the milk and whisk until the sauce thickens, about 3 minutes. Whisk in 1 cup of the cheese. Whisk until smooth. Remove from heat and stir in the sour cream. Season with salt and pepper, to taste.
Pour sauce over gnocchi. Sprinkle remaining cheese, green onions, and bacon over the gnocchi.
Bake for 25 minutes, or until bubble and cheese is melted. Remove from oven and let sit for 5 minutes. Serve warm.
Note-to make this dish vegetarian, leave out the bacon! It is still good:)