01 - Melt butter in a large soup pot over medium heat. Add the chopped onion and sauté until softened and translucent, approximately 4 minutes. Stir in the minced garlic and cook for 1 additional minute until fragrant.
02 - Add the diced potatoes, smoked paprika, and cayenne pepper to the pot. Season generously with salt and freshly ground black pepper, stirring to coat evenly.
03 - Pour in the chicken broth and bring to a rolling boil. Reduce heat to low, cover, and simmer for 20 to 25 minutes until the potatoes are fork-tender and easily break apart.
04 - Remove approximately one-third of the soup and thoroughly mash the potatoes using a potato masher or blend until smooth. Return the mashed portion to the pot and stir to combine, creating a rich, thickened base.
05 - Stir in the whole milk and heavy cream. Warm gently over low heat until heated through. Do not allow the soup to boil after adding dairy to prevent curdling.
06 - Gradually add the shredded sharp cheddar cheese one handful at a time, stirring continuously after each addition until completely melted and smoothly incorporated into the soup.
07 - Remove the pot from heat. Gently fold in the sour cream, stirring until the soup is silky and uniform in texture.
08 - Ladle the hot soup into serving bowls. Garnish each portion with crumbled bacon, thinly sliced fresh chives, and an extra sprinkle of shredded cheddar as desired.