Place diced bacon into a large Dutch oven over medium heat. Cook until golden and crisp, removing with a slotted spoon and draining on paper towels. Leave about two tablespoons of bacon drippings in the pot.

Add butter to the bacon fat and let it melt. Add diced onions and sauté until translucent. Stir in minced garlic for one minute until fragrant.

Sprinkle flour over the vegetables and stir constantly for about two minutes to cook out the raw flour taste.

Slowly pour in chicken broth and milk, whisking to avoid lumps. Add cubed potatoes and paprika. Bring to a gentle boil, then reduce heat and simmer for 15-20 minutes until potatoes are fork tender and the liquid has thickened.

Use a potato masher to roughly smash about half of the potatoes directly in the pot for a thick, hearty texture.

Turn heat to low and stir in sour cream and cheddar cheese until melted and uniform. Taste and adjust salt and pepper as needed.