Preheat an oven to 450 degrees F (230 degrees C). Line a baking sheet with parchment paper.
Lay each slice of bacon onto a work surface and place a potato nugget in the center of each bacon slice. Cut a slit down the center of each potato nugget and place a Cheddar cheese piece into the slit. Top each nugget with a dash of hot sauce. Wrap bacon around each filled potato nugget and secure the bacon to the nugget with a toothpick. Transfer the wrapped nuggets to the prepared baking sheet.
Bake in the preheated oven until nuggets are cooked through and bacon is crispy, 15 to 20 minutes.