In a skillet (I use a electric frying pan) , using medium heat until hot, about 3 minutes. Add 1/2 lb. bacon and cook until the fat starts to render out, about 1 minute. Add 1/2 medium yellow onion and 1 teaspoon finely chopped fresh thyme leaves and cook, stirring occasionally, until the onion is softened, 5 to 6 minutes.
Add 1 3/4 cups orzo pasta and cook, stirring occasionally, until lightly toasted and fragrant, about 2 minutes. Add 2 1/2 cups water and scrape up any browned bits from the bottom of the pan with a wooden spoon. Add 1 1/2 cups milk and 3/4 teaspoon fine salt, stir to combine, and bring to a boil.
Reduce the heat to medium-low and simmer uncovered, stirring often and making sure to scrape the bottom and corners of the pan with the wooden spoon, until almost all of the liquid is absorbed and the orzo is tender, about 10 minutes. (Using different brands of orzo, you may need more liquid, so add more water, 2 tablespoons at a time, if all of the liquid is absorbed but the orzo is not tender, your goal with the final mixture to be creamy.)
Remove the pot from the heat and stir in t1/4 cup finely chopped fresh Italian parsley and 2 tablespoons grated Parmesan cheese. Taste and season with more salt as needed. Serve immediately.
Notes
If you are reheating leftovers, adding in a tablespoon of water a mixing it in, helps.