Step 1

Melt butter in a large saucepan over medium heat. Add onion; sauté 3 minutes. Add garlic; sauté 2 minutes. Add potatoes and broth; bring to a boil. Reduce heat; simmer 12 to 14 minutes or until vegetables are tender.

Step 2

Transfer 1 cup of the mixture to a blender or food processor; pureé until smooth. Return mixture to saucepan. Stir in milk; heat over medium heat until hot (do not boil). Season to taste with salt and pepper.

Step 3

Stir one cup of the cheddar cheese into the soup until melted and heated through.

Step 4

Ladle soup into four bowls; top with remaining 1/4 cup cheese.

Step 5

Garnish with crumbled bacon and chopped chives.