1️⃣ Crisp the Bacon
Heat a large soup pot or Dutch oven over medium heat. Cook bacon until golden and crisp. Transfer bacon to a plate, leaving the flavor-rich fat in the pot.

2️⃣ Build the Flavor Base
Add butter to the pot. Once melted, add onion and cook 3–5 minutes or until soft and fragrant. Stir in garlic for 30 seconds.

3️⃣ Create a Light Roux
Sprinkle flour over the onions and stir well until combined and no dry flour remains.

4️⃣ Simmer the Potatoes
Add diced potatoes, broth, milk, cream, salt, pepper, and chili powder. Stir, bring to a boil, then reduce heat and simmer until potatoes are fork-tender (about 10 minutes).

5️⃣ Blend for Creaminess
Remove about half the soup to a blender (or use an immersion blender). Blend until smooth, then pour back into the pot. Stir well to combine the creamy base with the potato chunks.

6️⃣ Finish & Serve
Stir in sour cream and the reserved bacon. Taste and season if needed. Simmer 5 minutes before serving.

7️⃣ Garnish
Top bowls with cheddar, bacon bits, and chives. Serve warm and enjoy!