Pre-heat the oven to 400°F.
In a small bowl, add the brown sugar and chili powder; mix to thoroughly combine; set aside.
Cut bacon slices into 3 pieces and place 2 pieces opposite ways into the cups of a 12 cup mini-muffin tin.
Put 1 to 2 frozen tater tots on top of the bacon.
Evenly distribute the brown sugar and chili powder over the tops of the tater tots.
Place in the pre-heated oven and bake for 12 to 15 minutes or until bacon is crisp (use the duration suggested on the bacon package).
Open oven door and top with cheddar cheese; cook for another 5 minutes or until the cheese is melted.
Remove from the oven; remove bacon cups from the mini-muffin pan; place on a wire rack (with a paper towel underneath) to cool and drain excess grease.
Let cool 5 minutes before serving.