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Start the Traeger on Smoke with the lid open until the fire is established (about 5 minutes). Preheat to 350 degrees F, lid closed, for 10 to 15 minutes.
Put the bacon in a saucepan and cook on the Traeger for about 20 minutes or until the fat is rendered.
Pour out all of the bacon grease except for 1 tablespoon. (Save the grease for another recipe.) Add in the chopped onion and cook until they're translucent, about 5 more minutes.
Add the ground beef and minced garlic and cook until the ground beef is brown, breaking the meat up with a spoon and stirring occasionally, about 10 minutes more. Drain off most of the grease.
Stir in the ketchup, chili powder, smoked paprika, cumin, black pepper, Worcestershire sauce, nutmeg and mustard and simmer for 15 minutes or until thickened. Season with salt and more pepper, if needed.
While the chili is cooking, throw on the hot dogs to get some nice grill marks.
After the chili and dogs are done, remove them from the grill and put the buttered buns on to get lightly toasted.
Put together your chili dogs, slathering them with the bacon chili and finishing with a heap of cheddar cheese. Enjoy!
Traeger Grill and Baldface Lodge Combine Forces