01 - In a large pot, melt butter over medium heat. Add onion, celery, and carrots. Sauté for 5 to 6 minutes until vegetables are softened.
02 - Stir in minced garlic and cook for 1 minute until fragrant.
03 - Add diced potatoes, broth, salt, pepper, paprika, and bay leaf. Bring to a boil, then reduce heat and simmer uncovered for 20 to 25 minutes until potatoes are fork-tender.
04 - Remove bay leaf. Use an immersion blender to partially blend the soup in the pot, leaving some chunks for texture. Alternatively, transfer half the soup to a blender, puree, and return to pot.
05 - Stir in milk and heavy cream. Simmer gently for 5 minutes.
06 - Remove from heat and gradually stir in grated cheddar until melted and smooth.
07 - Taste soup and adjust seasoning as needed.
08 - Ladle into bowls and garnish with fresh chives and optional crumbled bacon.