Step 1

Melt 1 Tablespoon butter in a large skillet over medium heat. Add sliced onion and brats; cook approximately 10 minutes, turning occasionally to brown all sides.

Step 2

Add beer to pan, reserving 1/4 cup for the sauce. Reduce heat to medium-low and simmer for about 15 minutes, until beer has reduced and brats are no longer pink inside.

Step 3

Prepare beer cheese sauce by melting 1 Tablespoon butter in a small saucepan. Stir in flour and seasonings and cook, stirring, 1-2 minutes. Add milk and beer all at once. Remove from heat and stir in shredded cheese and horseradish.

Step 4

Place brats in buns, then top with beer cheese sauce, crumbled bacon, and minced chives.