01 - Melt butter in a large pot over medium heat. Add turkey bacon and cook until golden and crisp. Remove bacon and set aside, keeping rendered fat in the pot.
02 - Add onion, celery, and carrots to the pot. Sauté for 4 to 5 minutes until softened. Stir in garlic and cook for 1 minute until fragrant.
03 - Add diced potatoes, salt, black pepper, and smoked paprika. Stir to evenly coat the vegetables with seasonings.
04 - Pour in broth and bring to a boil. Reduce heat to low, cover, and simmer for 15 to 20 minutes until potatoes are very tender.
05 - Partially blend the soup using an immersion blender for a creamy yet textured consistency. Alternatively, blend half of the soup separately and return it to the pot.
06 - Stir in milk, heavy cream, and shredded cheddar cheese. Simmer gently for 5 minutes, stirring constantly until cheese is fully melted and soup is creamy.
07 - Adjust seasoning as needed, then ladle soup into bowls. Top each serving with reserved turkey bacon, chopped chives, and extra cheese if desired.