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Place the bacon into a large heavy skillet over medium heat. Cook until the fat has rendered, 10 to 15 minutes.
Add in onion and saute until the onion is soft, about 5 minutes.
Stir in the brown sugar.
Pour in 1 cup of the beef broth. Simmer until the mixture has reduced and is thickened, about 10 minutes.
Pour in another cup of beef broth. Simmer until the mixture has reduced, about 10 minutes. Continue this process until all the beef broth has been used.
Transfer the bacon mixture to a blender. Add in honey, paprika, and black pepper. Blend for about 30 seconds. The mixture should be chunky, not smooth.
Add in butter and stir until melted. Use immediately or transfer to an airtight container. Refrigerate for up to 2 weeks. Warm before using.