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Heat the grill to around 400° F (204°C)
Throughly wash the potatoes and pat dry. Chop each potato into ¾"-1" pieces and place into a large mixing bowl.
Pour the oil, garlic, paprika, salt, and pepper over the top of the potatoes. Stir until each piece of potato is coated with oil and spices.
Tear off 8 pieces of foil measuring about 12" x 12" each.
Even distribute the potatoes between 4 of the pieces of foil. Then, top with the other pieces of foil and fold each side so it holds together.
Place on the 400°F grill over indirect heat. Let cook for 15 minutes then flip and cook for an additonal 15 minutes. After 30 minutes take the packets off the grill and make sure you can easily pierce the potatoes with a fork. If not, roll them back up and let them cook for an additional 5-10 minutes.
Once the potatoes are done, carefully unroll 3 sides of the packet. Top each packet with ¼ cup of grated cheddar cheese and 2 tablespoons of bacon bits. Gently roll the packet back up and let it sit for 5-10 minutes so the cheese can melt.
After the cheese is melted, serve directly in the foil or scoop the potatoes out onto a plate or bowl.