Preheat your oven to 425°F and arrange bacon strips on a baking sheet in a single layer. Bake for 15 minutes until crispy and rendered. While bacon cooks, peel and dice potatoes into 1/2-inch cubes, measuring out your flour, and preparing all other ingredients. Once bacon is done, chop it into bite-sized pieces and set aside. This parallel cooking saves time and ensures the bacon is perfectly crispy.

In a large pot over medium-high heat, melt the butter completely, then whisk in the flour to create a paste. Cook this roux for 1-2 minutes, stirring constantly, to remove the raw flour taste and develop a slight golden color. This creates the thickening base for your soup and prevents lumps from forming when you add the liquids.

Gradually whisk in the milk and broth to the roux, stirring constantly to prevent lumps from forming. Bring the mixture to a boil over medium-high heat, stirring occasionally. I find whisking slowly at first helps the liquid incorporate smoothly without creating any lumps that ruin the texture.

Add the diced potatoes to the boiling liquid and maintain a gentle boil for 10 minutes until the potatoes are tender and begin to break down slightly at the edges. The potatoes will thicken the soup naturally as their starches release into the liquid, creating body without needing extra thickening agents.

Using the back of a wooden spoon, gently mash some of the cooked potatoes against the side of the pot to break them into small chunks while keeping some pieces whole for texture. Reduce heat to medium-low and stir in the cooked bacon from Step 1, cheddar cheese, sour cream, salt, garlic powder, onion powder, and black pepper to taste. Simmer gently for 2-3 minutes without boiling to let the flavors meld, then remove from heat. I like to use full-fat sour cream here because it creates a much richer, creamier texture than the lighter versions.

Ladle the soup into bowls and top each serving with additional crispy bacon pieces, fresh snipped chives, and a sprinkle of cheddar cheese. The toppings add texture and visual appeal while reinforcing the flavors in each spoonful.