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Pour water into bottom of Instant Pot. Add the potatoes to a steamer basket. Lower the steamer basket into the Instant Pot.
Cover Instant Pot and lock the lid into place. Make sure valve is set to sealing. Set the manual/pressure cook button to 4 minutes. When time is up move the valve to venting. Remove lid.
Remove the steamer basket. Discard the water. Add potatoes into Instant Pot. Fold in the garlic salt, mayonnaise, sour cream, diced onions, cheese and bacon.
Salt and pepper to taste, if needed.
Optional step: Pour the potatoes into a baking dish and bake for 20 minutes at 350° F for a more casserole type of recipe (or you can use your air fryer lid for this part).