Heat olive oil in a large pot over medium heat. Add finely diced onion and sauté for about 5-7 minutes until soft and translucent. Stir in minced garlic for the last minute.

Add diced potatoes and broth to the pot. Stir in thyme, smoked paprika, salt, and pepper. Bring to a boil, then reduce to a simmer for 15-20 minutes until potatoes are fork-tender.

Use an immersion blender to puree the soup to your desired consistency, leaving some potato chunks for texture.

Reduce heat to low and stir in heavy cream, shredded cheddar cheese, and sour cream until cheese melts.

Ladle soup into bowls and top with crumbled bacon and green onions.