Cook the Bacon: Heat a large pot over medium heat, add sliced bacon and cook until crispy, about 5-7 minutes. Remove bacon strips and let drain on a paper towel, keeping the fat in the pot.

Sauté the Onions: In the bacon fat, add finely chopped onions and sauté for about 5 minutes until translucent and fragrant.

Add Garlic and Seasonings: Stir in minced garlic and cook for another minute. Add dry thyme and smoked paprika, mixing well.

Incorporate Potatoes and Broth: Add diced russet potatoes and chicken broth. Bring to a boil, then reduce heat and simmer for 15-20 minutes until potatoes are tender.

Blend the Soup: Use an immersion blender to blend soup to a mostly smooth consistency with some chunks. If using a countertop blender, be cautious during transfers.

Stir in the Smoked Gouda: Lower heat and gradually mix in shredded smoked Gouda cheese until melted.

Add Cream and Season: Pour in heavy cream, mix, and avoid boiling. Season with salt and pepper to taste.

Serve and Garnish: Ladle soup into bowls, garnish with crumbled bacon and chopped chives, and serve immediately.