In a large pot, heat the olive oil over medium heat. Add the finely chopped onion and sauté until it turns translucent and begins to soften, about 5 minutes.
Stir in the minced garlic, cooking for an additional minute until fragrant.
Add the diced russet potatoes to the pot, pouring in the vegetable broth. Increase the heat and bring the mixture to a boil. Once boiling, reduce the heat to a gentle simmer, cooking until the potatoes are tender, roughly 15-20 minutes.
Using an immersion blender, puree the soup until smooth. For texture, blend only half of the soup and mix it back with the remaining chunky portion.
Return the pot to medium heat. Add the heavy cream, shredded cheddar cheese, sour cream, and smoked paprika. Stir well to combine and allow the soup to heat through until the cheese is melted and everything is creamy. Season to taste with salt and freshly cracked pepper.
Ladle the hot soup into bowls and garnish with extra cheddar cheese, sliced green onions, crumbled turkey bacon (if included), and a sprinkle of fresh chives.
Notes
Consider serving the soup in rustic bread bowls for a cozy touch or alongside warm buttered bread for dipping.