Dice the onion and celery into similar-sized pieces, mince the garlic, and set aside in a bowl. Peel and cut the potatoes into 1-inch chunks, placing them in a separate bowl. Crumble the cooled bacon (you'll cook it first), shred the cheddar cheese, slice the scallions, and cut the cream cheese into ½-inch cubes. Having everything prepped before pressure cooking ensures you can work quickly during the final steps. I like to prep the potatoes last and keep them in a bowl of water to prevent browning, then drain well before adding to the pot.

Turn the Instant Pot to Sauté mode and add the bacon, cooking for 6-8 minutes until it's browned and crispy. Remove the bacon and set aside to cool, then crumble it. Keep about 2 tablespoons of bacon fat in the pot, discarding excess if needed. Add the diced onion, celery, garlic, salt, and black pepper to the pot and cook for about 5 minutes, stirring occasionally, until the vegetables soften and become fragrant. This creates a flavorful base that will infuse the entire soup.

Add the peeled potato chunks and chicken broth to the pot with the aromatic base from Step 2, stirring gently to combine. Close the Instant Pot lid and set it to cook on HIGH pressure for 10 minutes. While it cooks, prepare the milk-cornstarch mixture in a small bowl by whisking them together until smooth—this will help thicken the soup later. After cooking, allow the pressure to release naturally for 10 minutes, then carefully release any remaining steam using the quick-release valve.

Once pressure is fully released, turn the Instant Pot back to Sauté mode. Stir in the milk-cornstarch mixture from Step 3 and add the cream cheese cubes, stirring frequently for about 4 minutes until the cream cheese melts completely and the soup thickens. Add the smoked paprika and shredded cheddar cheese, stirring until all the cheese is melted and the soup reaches your desired consistency. I find that stirring constantly during this step prevents the bottom from sticking and ensures even cheese distribution throughout.

Turn off the Instant Pot and let the soup cool for about 10 minutes—this allows the flavors to settle and makes it safer and more enjoyable to eat. Ladle the soup into bowls and top each serving with the crumbled bacon from Step 2, additional shredded cheddar if desired, and a sprinkle of fresh scallions. The warm soup will gradually reheat the toppings, creating a wonderful texture contrast.