Creamy baked potato soup loaded with cheese, bacon, and chives is a rich, comforting family-style meal. This indulgent bowl turns a simple baked potato into a warm, satisfying dinner.
Preheat your oven to 400°F (204°C). Scrub the russet potatoes, pierce with a fork, and bake directly on the oven rack for 50–60 minutes, until completely tender.
While the potatoes bake, cook the bacon in a large Dutch oven over medium heat until crisp. Remove bacon and set aside, reserving 1 tablespoon bacon fat.
In the reserved fat, add the butter and chopped onion. Sauté on medium-low heat for about 6–8 minutes, stirring occasionally, until onions are soft but not browned.
Slice baked potatoes in half. When cool enough, scoop the flesh into a bowl and mash until chunky. Reserve some potato skins for texture, if desired.
Stir mashed potato into the pot with onions. Gradually add whole milk and heavy cream, whisking constantly to prevent lumps. Cook over medium heat, stirring, until the soup thickens (about 10 minutes).
Reduce heat to low. Stir in cheddar cheese, garlic powder, salt, and black pepper. Continue stirring until cheese melts and soup is creamy.
Ladle soup into bowls and top each with crumbled bacon, extra cheddar, and chopped chives. Serve hot.