01 - Melt butter in a large soup pot over medium heat. Add the chopped onion and sauté until translucent, approximately 4 minutes. Add the minced garlic and cook for 1 additional minute until fragrant.
02 - Add the diced potatoes to the pot along with smoked paprika and cayenne pepper. Season generously with salt and freshly ground black pepper, stirring to coat evenly.
03 - Pour in the chicken broth and bring to a boil. Reduce heat to a simmer, cover the pot, and cook for 20 to 25 minutes until the potatoes are fork-tender.
04 - Remove approximately one-third of the soup and 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, thick base.
05 - Stir in the whole milk and heavy cream. Heat gently over low heat until warmed through, ensuring the mixture never reaches a boil to prevent curdling.
06 - Gradually add the shredded sharp cheddar cheese a 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 smooth and uniformly blended.
08 - Ladle the soup into serving bowls. Top each portion with crumbled bacon, freshly sliced chives, and an extra sprinkle of sharp cheddar as desired.