Cook bacon until crisp. I prefer to bake mine at 425f on parchment-lined cookie sheets. This has always proved to be the best way to achieve even results. Drain oil and allow to cool.
In medium stock pot, warm palm shortening until melted. Add in onion and garlic, cooking until lightly caramelized. Stir in squash and cook until warm. Add in broth, paprika, salt and pepper. Bring to simmer over medium heat, cook for an additional 15 minutes.
Puree soup by using hand blender or adding in small batches to your Vitamix or other blender. Return to pot. Crumble bacon into bits. Stir in ½ bacon and canned coconut milk, allow to cook for an additional 5-10 minutes.
Serve warm, using the remaining bacon and added chives for garnish.