Preheat oven to 425°F. Line a baking sheet with parchment paper.
In a large pot, add cleaned potatoes, cover with cold water and bring to a boil over medium-high heat. Once the water begins to boil, cook for about 4 - 5 minutes until fork tender. Do not fully cook through so they don't fall apart during the remaining cooking. Drain and allow to steam dry for a few minutes, then toss potatoes in olive oil to lightly coat and season to taste with salt.
Cut the bacon strips in half. Wrap each Idaho fingerling potato with a half strip of bacon, arrange bacon-wrapped potatoes in a single layer on a baking sheet. Bake in preheated 425°F oven for 40 - 45 minutes or until bacon is golden and crispy.
While roasting potatoes, prepare the cheese fondue dip. In a saucepan, heat the unsalted butter with cornstarch over low heat until melted. Whisk in the wine and salt, stirring continually over medium-low heat until just starting to boil, continue to cook, continually stirring for about 1 minute until mixture starts to thicken.
Turn down the heat to low, add the cheese and thyme and continue to stir just until the cheese is melted. Season to taste. Garnish with crushed red pepper flakes, serve with the bacon-wrapped potatoes.
Notes
If you cannot find Idaho fingerling potatoes, you can substitute Idaho baby potatoes, or Idaho baking potatoes into wedges.The cheese fondue can also be served in a fondue pot or dip warmer.White wine can be substituted for milk if preferred.