If you haven't already, cook the bacon slices until crispy, then crumble and set aside for topping.

Heat 2 tablespoons of olive oil in a large soup pot over medium heat. Add the diced onion and cook for 5 to 7 minutes, stirring occasionally, until the onions turn soft and translucent. Stir in the minced garlic and cook for 1 minute until fragrant.

Add the diced potatoes to the pot along with the broth. Sprinkle in the dried thyme, smoked paprika, salt, and pepper. Bring everything to a boil, then reduce the heat to maintain a gentle simmer. Cook for 15 to 20 minutes until the potatoes are completely fork-tender and slightly translucent around the edges.

Once the potatoes are tender, use an immersion blender to blend the soup to your preferred consistency, leaving some chunks for texture. For completely smooth soup, blend for 30 to 45 seconds. If using a regular blender, transfer soup in batches (never more than halfway full), remove the center lid cap, cover with a folded kitchen towel, and blend until smooth.

Return the blended soup to low heat and stir in the heavy cream, shredded cheddar cheese, and sour cream. Keep stirring gently until the cheese melts completely and everything is well combined, about 5 minutes. If cheese clumps, lower heat and whisk vigorously. Taste and adjust seasoning with more salt and pepper if needed.

Ladle the soup into serving bowls and top each portion with crumbled bacon, additional shredded cheese, and chopped green onions before serving.