Cook the Bacon:

• In a large Dutch oven or heavy-bottomed pot, cook the chopped bacon over medium heat until crispy.
• Remove with a slotted spoon and set aside. Leave about 2 tablespoons of bacon grease in the pot.

Sauté the Onions:

• Add the diced onions to the pot and sauté until soft and translucent (about 3-4 minutes).

Make the Roux:

• Stir in the butter until melted.
• Sprinkle in the flour, stirring constantly, and cook for 1-2 minutes to remove the raw flour taste.

Add Liquids & Potatoes:

• Slowly pour in the chicken broth while stirring to prevent lumps.
• Add the cubed potatoes and bring the mixture to a gentle simmer. Cover and cook for 15-20 minutes until the potatoes are fork-tender.

Blend for Creamy Texture (Optional):

• For a smoother soup, use an immersion blender to blend some of the potatoes while leaving some chunks for texture.

Incorporate Dairy & Cheese:

• Reduce the heat to low and slowly stir in the milk, shredded cheddar cheese, and sour cream. Stir until the cheese melts completely.
• Season with salt, pepper, garlic powder, and smoked paprika.

Final Touch & Serve:

• Stir in half of the crispy bacon and save the rest for garnish.
• Ladle into bowls and top with additional bacon, shredded cheese, and fresh chives. Enjoy!