In a large Dutch oven, cook the diced peppered bacon over medium heat until crispy. Use a slotted spoon to remove the bacon bits and set them aside for garnishing, leaving the rendered fat in the pot.
Add the sliced leeks to the bacon fat and cook until soft and translucent (about 5 minutes). Add the minced garlic and cook for just 60 seconds until fragrant.
Add the cubed potatoes and pour in the chicken bone broth. Bring to a boil, then reduce heat and simmer for 15–20 minutes, or until the potatoes are very tender when pierced with a fork.
Before adding the dairy, use an immersion blender to pulse the soup 4 or 5 times. You don't want to liquefy it completely; the goal is to create a thick, creamy "bisque" base while still leaving about 50% of the potato chunks intact.
Stir in the heavy cream and the smoked white cheddar. Keep the heat on low and stir constantly until the cheese is completely melted and the soup is a uniform, velvety consistency. Season with smoked paprika and white pepper.
Ladle into warm bowls. Top generously with the reserved crispy bacon bits and a sprinkle of fresh chives.