Preheat the oven to 450 degrees F.
Prepare the horseradish cream
In a medium saucepot, add diced bacon and butter. Render slowly over medium heat. Cook until bacon gets crispy and most of the fact is rendered out.
Add the flour and whisk to form a roux. Cook over medium heat for 10 minutes, stirring regularly.
Slowly add the milk a little at a time, allowing the mixture to thicken before adding more.
Once all milk has been added and has created a cream, add the horseradish, bay leaves, chili flakes and lemon zest. Whisk into the cream.
Cook the cream at a low simmer for 15 minutes, being careful not to scorch.
Fold in the Parmesan and season to taste with salt and pepper.
Spoon 1 tablespoon of horseradish cream on each oyster, sprinkle with bread crumbs, and arrange on a baking sheet.
Place the oysters in the oven and bake for 8- 10 minutes or until they are browned on top and are beginning to bubble.