In a large pot, over medium heat, add diced bacon and cook until crispy, about 5–7 minutes.

With the bacon fat still warm, add finely chopped onion to the pot and sauté for about 5 minutes until the onion becomes translucent and fragrant.

Mix in minced garlic and sauté for an additional minute, stirring constantly.

Stir in diced russet potatoes, chicken broth, dried thyme, and smoked paprika. Bring to a rolling boil, then reduce heat to a simmer and cover.

Using an immersion blender, blend the soup until it reaches desired smoothness.

Return the blended soup to low heat and stir in shredded smoked Gouda cheese until fully melted.

Slowly pour in heavy cream while gently stirring, then heat without boiling for about 5 minutes.

Ladle the hot soup into bowls, garnishing with crumbled bacon and fresh chives.