In a large pot or Dutch oven over medium heat, cook the chopped bacon until crisp, about 5-7 minutes. Use a slotted spoon to transfer the bacon to a paper towel-lined plate, reserving about 2 tablespoons of bacon grease in the pot.

Add the diced onion to the pot with the bacon grease and cook until softened, about 5 minutes. Add the minced garlic and cook for another minute until fragrant.

Sprinkle the all-purpose flour over the onions and garlic. Cook, stirring constantly, for 1 minute to cook out the raw flour taste. Gradually whisk in the chicken broth, ensuring there are no lumps.

Add the cubed potatoes, salt, black pepper, and paprika to the pot. Bring to a boil, then reduce the heat to a simmer. Cover and cook for 15-20 minutes, or until the potatoes are very tender and can be easily pierced with a fork.

Turn off the heat. Use an immersion blender to blend the soup directly in the pot until it reaches your desired consistency. For a completely smooth soup, blend thoroughly. For a chunkier soup, pulse a few times, leaving some potato pieces intact. (Alternatively, you can carefully transfer about half the soup to a standard blender, blend until smooth, and return it to the pot).

Stir in the heavy cream and half of the cooked bacon. Gently heat the soup over low heat for another 2-3 minutes until warmed through, but do not let it boil.

Taste and adjust seasoning with more salt and pepper if needed. Ladle the soup into bowls and garnish with shredded cheddar cheese, a dollop of sour cream, the remaining crispy bacon, and fresh chives.