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Heat olive oil in a large saucepan over medium-high heat. Add in onion and saute about 5 minutes. Add in bacon and saute another 5 minutes, stirring occasionally. Stir in paprika and let it heat for about 1 minute, just enough to release its flavor.
Stir in cornstarch until no more white specks appear. Pour in chicken broth and heat to a simmer. Continue simmering 5 minutes and let liquid thicken.
Pour all contents of the saucepan into a blender and blend until smooth. Season with salt and pepper to taste.
Serve hot, or store in an airtight container and re-heat in a saucepan when ready to serve.