Pre-heat the oven to 400 degrees F.
Bring a large pot of water to the boil. Once boiling, cook the gnocchi until they just start to float. Remove them from the water once they float and immediately submerge them in an ice bath. Once cold, remove from the ice bath and set aside.
Meanwhile, add the cubed pancetta to a medium skillet over medium high heat and cook until most of the fat has rendered and the pancetta has browned. Pour off most of the fat, reduce heat to medium, and then add the shallots, garlic and smoked paprika. Cook for 30 seconds until fragrant.
Add the chopped tomatoes, tomato paste, cherry tomatoes and sugar and allow to simmer for 5 minutes. Remove the skillet from the heat and stir in the cream. Add the gnocchi to the sauce and season with salt and pepper and torn basil.
Transfer the gnocchi and sauce to an oven-proof dish and top with the torn mozzarella.
Place in the oven and bake for 10 minutes until the mozzarella is melted and golden.
Remove from the oven and allow to rest for 5 minutes before serving.