Cook bacon slices in a skillet until crispy. Remove and place on paper towels to drain. Crumble when cool. Keep a little bacon fat to cook onions for extra flavor.

In a large saucepan, melt butter over medium heat. Add chopped onion and sauté until soft. Stir in garlic and cook for 1 minute. This creates a fragrant base for your soup.

Add peeled and diced potatoes to the saucepan. Pour in chicken or vegetable broth. Bring to a boil, then reduce heat to a simmer. Cook until potatoes are tender, about 15 minutes.

In a small pan, melt 2 tablespoons butter. Stir in flour and cook for 1–2 minutes. Slowly whisk in milk to make a smooth sauce. This will thicken the soup and make it creamy.

Pour the milk and flour mixture into the potato mixture. Stir well to combine. Simmer for 5–10 minutes until the soup thickens. Season with salt, pepper, and paprika.

For a smoother soup, use a blender or potato masher to partially blend the potatoes. Leave some chunks for texture. This step is optional, depending on your preference.

Stir in shredded cheddar cheese until melted. The soup will become rich and creamy. Taste and adjust seasoning if needed.

Ladle the soup into bowls. Top each serving with crumbled bacon and chopped chives or green onions. Serve hot with fresh bread for a comforting meal.