Preheat your oven to 350°F (177°C) if using a baking dish.
In a large pot or Dutch oven, cook the chopped bacon over medium heat until crispy. Remove the bacon and set aside, leaving the rendered fat in the pot.
Add the chopped onion and bell pepper to the pot and sauté in the bacon fat for about 5 minutes, until softened.
Stir in the drained beans, cooked bacon, ketchup, brown sugar, mustard, Worcestershire sauce, smoked paprika, black pepper, salt, and water or chicken broth. Mix well.
Bring the mixture to a simmer and let cook for about 10 minutes, stirring occasionally.
If using a baking dish, transfer the mixture to the dish, cover it with foil, and bake for 30 minutes. If continuing to cook on the stovetop, reduce heat to low and let simmer uncovered for another 20 minutes.
Remove from heat and let cool slightly before serving. Enjoy your Cowboy Baked Beans warm.