Follow these steps to create your Loaded Baked Potato Soup effortlessly:

1. Prepare the Potatoes: Peel and dice the potatoes into small cubes for even cooking.
2. Cook the Bacon: In a large pot over medium heat, cook the chopped bacon until crispy. Remove and set aside, leaving the fat in the pot.
3. Sauté Onions and Garlic: In the same pot with the bacon fat, add the chopped onion. Sauté until translucent, about 4-5 minutes. Add minced garlic and sauté for an additional minute.
4. Add Broth and Potatoes: Add the diced potatoes to the pot and pour in the chicken or vegetable broth. Bring to a boil, then reduce heat and let it simmer for 15-20 minutes until the potatoes are tender.
5. Mash the Potatoes: Once cooked, use a potato masher to mash some of the potatoes while leaving some cubes intact for texture.
6. Stir in Cream and Season: Pour in the heavy cream and stir well. Season with salt, black pepper, and smoked paprika (if using). Let it simmer for an additional 5 minutes.
7. Mix in Cheese and Sour Cream: Remove the pot from the heat and stir in half of the shredded cheddar cheese and the sour cream until well combined.
8. Serve and Garnish: Ladle the soup into bowls and top with the remaining cheddar cheese, crispy bacon, green onions, and chives.

These instructions guide you through every step needed to create this flavorful Loaded Baked Potato Soup with ease.