Cook Bacon: In a large pot, cook chopped bacon over medium heat until crispy. Remove with a slotted spoon and set aside, leaving the drippings in the pot.
Sauté Aromatics: Add butter to the bacon drippings. Once melted, sauté garlic and half the green onions for 1–2 minutes.
Thicken Soup: Stir in flour to form a roux. Cook for 1 minute, then gradually whisk in chicken broth and milk.
Add Potatoes: Add diced potatoes, salt, pepper, and paprika. Bring to a boil, then reduce heat and simmer for 15–20 minutes until potatoes are tender.
Blend Soup: Use an immersion blender to partially purée the soup (leave some chunks for texture). Alternatively, blend half the soup in a regular blender and return to the pot.
Add Cheese & Cream: Stir in shredded cheddar and sour cream until melted and smooth.
Serve: Ladle into bowls and top with crispy bacon, remaining green onions, extra cheese, and a dollop of sour cream.