Preheat your oven to 375°F. Season the pork chops with salt, pepper, and smoked paprika. In a large skillet, melt the butter over medium-high heat. Sear the chops for 2 minutes per side until golden brown. This locks in the juices and prevents the "gray meat" look common in baked casseroles.
In a medium bowl, whisk together the cream of mushroom soup, sour cream, milk, garlic powder, and dried thyme. This creates a more velvety, herb-infused binder than the soup alone.
Lightly grease a 9x13 baking dish. Layer half of the sliced potatoes and onions on the bottom. Pour half of the soup mixture over the top and spread evenly.
Place the seared pork chops in a single layer over the potatoes.
Top the chops with the remaining potatoes and onions, followed by the rest of the sauce.
Cover the dish tightly with aluminum foil. Bake for 45 minutes. Covering is essential to steam the potatoes until they are fork-tender.
Remove the foil and sprinkle the shredded cheddar over the top. Return to the oven for 10–15 minutes, uncovered, until the cheese is bubbly and the edges of the potatoes are golden.