01 - Melt butter in a large soup pot over medium heat. Add the chopped onion and sauté until translucent, approximately 4 minutes. Add minced garlic and continue cooking for 1 minute until fragrant.
02 - Stir in the diced potatoes, smoked paprika, and cayenne pepper. Season generously with salt and freshly ground black pepper, tossing to coat evenly.
03 - Pour in the chicken broth and bring to a rolling boil. Reduce heat to a gentle simmer, cover the pot, and cook for 20 to 25 minutes until the potatoes are fork-tender and breaking apart.
04 - Remove approximately one-third of the soup from the pot. Using a potato masher or blender, purée this portion until smooth, then return it to the pot. This creates a rich, thick texture while maintaining tender potato chunks.
05 - Stir in the whole milk and heavy cream. Heat gently over low heat until warmed through—do not allow the soup to boil, or the dairy may curdle.
06 - Gradually add the shredded sharp cheddar cheese one handful at a time, stirring continuously after each addition until fully 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 completely smooth. Taste and adjust seasoning as needed.
08 - Ladle the hot soup into serving bowls. Top each portion with crumbled bacon, thinly sliced fresh chives, and an extra sprinkle of sharp cheddar cheese.