In a large Dutch oven or heavy pot, cook the chopped bacon over medium heat until it is perfectly crispy. Use a slotted spoon to remove the bacon and set it aside on a paper towel, but keep about 3 tablespoons of the bacon drippings in the pot.

Add the diced onions to the bacon fat. Cook until translucent, then add the minced garlic and cook for another minute until fragrant.

Sprinkle the flour over the onions and garlic. Stir constantly for about 2 minutes to cook out the raw flour taste. Slowly whisk in the chicken broth and milk, making sure to scrape up any browned bits from the bottom of the pot.

Add the cubed potatoes to the liquid. Bring the mixture to a gentle boil, then reduce the heat and simmer for 15 to 20 minutes, or until the potatoes are fork tender.

For a varied texture, use a potato masher to crush about half of the potatoes directly in the pot. If you prefer a completely smooth Loaded Baked Potato Soup, you can use an immersion blender.

Stir in the sour cream and shredded cheddar cheese. Continue to stir until the cheese is fully melted and the soup is silky. Season with salt, pepper, and paprika.

Ladle the soup into bowls and top with the reserved crispy bacon, extra cheese, and fresh chives.