Cook the bacon in a stock pot over medium heat until crispy, about 5–7 minutes. Set aside, leaving 2 tablespoons of bacon fat in the pot.

Melt the unsalted butter in the same pot. Add chopped onions and sauté for 4–5 minutes until soft. Stir in minced garlic and cook for another 30 seconds.

Add diced Yukon potatoes, chicken stock, thyme, smoked paprika, salt, and pepper to the pot. Bring to a boil, then reduce to a simmer and cook for 10–12 minutes until potatoes are tender.

Remove from heat and use an immersion blender to puree the soup until chunky yet creamy. Alternatively, transfer to a blender in batches.

Return the pot to low heat and stir in heavy cream and sour cream. Simmer for about 15 minutes, stirring occasionally.

Just before serving, stir in reserved crispy bacon. Adjust seasoning if needed.

Ladle soup into bowls and top with optional garnishes like cheddar cheese, green onions, or extra sour cream.