Prep the potatoes. Scrub and peel the potatoes (leave some peel on if you like a rustic look). Cut into 1-inch cubes so they cook evenly and hold their shape.
Cook until just tender. Place potatoes in a large pot and cover with cold, salted water by an inch.
Bring to a gentle boil and cook 10–14 minutes, until a knife slides in with slight resistance. Don’t overcook.
Drain and steam-dry. Drain potatoes in a colander. Let them sit for 5 minutes so steam escapes.
This prevents a watery salad and helps the dressing cling.
Crisp the bacon. While potatoes cook, fry bacon in a skillet over medium heat until deeply crisp. Transfer to a paper towel–lined plate and crumble once cool. Reserve a tablespoon of bacon fat for the dressing if you want extra flavor.
Make the dressing. In a large bowl, whisk sour cream, mayonnaise, Dijon, vinegar, garlic powder, smoked paprika (if using), ½ teaspoon salt, and several grinds of pepper.
Whisk until smooth and creamy.
Season the potatoes warm. Add the warm, steam-dried potatoes to the bowl. Gently fold with a spatula to coat. Warm potatoes absorb flavor better, giving you a well-seasoned salad.
Add the mix-ins. Fold in most of the cheddar, most of the bacon, and most of the green onions.
Reserve some for topping. Taste and adjust salt, pepper, and vinegar as needed.
Chill briefly. Cover and refrigerate for 30–60 minutes. This lets flavors meld and the dressing thicken slightly.
Finish and serve. Before serving, stir in fresh chives and top with the reserved cheddar, bacon, and green onions.
Add a pinch of pepper for a finishing touch.