Peel and cube the russet potatoes into 1-inch pieces. Dice the yellow onion finely and mince the garlic. Set aside.

In a large pot over medium heat, melt the butter until it bubbles. Add the diced onion and sauté for 5-7 minutes until translucent. Stir in the minced garlic and cook for an additional minute.

Add the cubed potatoes, chicken broth, water, salt, black pepper, and smoked paprika to the pot. Bring to a boil, then reduce heat and cover, simmering for 15-20 minutes until the potatoes are fork-tender.

Blend the soup until smooth using an immersion blender or in batches with a traditional blender.

Return the blended soup to low heat, stirring in the heavy cream and sour cream. Gently heat without boiling, adjusting seasoning if needed.

Cook the bacon in a skillet until crispy. Crumble and set aside.

Ladle the soup into bowls and top with crumbled bacon, shredded cheddar cheese, and sliced green onions. Serve warm.