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In a large pot, cook the chopped bacon until crispy. Remove bacon and set aside, leaving the bacon drippings in the pot.
Add diced onion to the pot and cook until translucent.
Add minced garlic and cook for an additional 1-2 minutes.
Pour in chicken broth and add diced potatoes. Bring to a simmer and cook until potatoes are fork-tender.
Use an immersion blender to blend the soup until smooth (or blend in batches in a regular blender).
Stir in heavy cream, salt, black pepper, dried thyme, and cayenne pepper. Simmer for an additional 5-10 minutes.
Serve the soup hot, topped with shredded cheddar cheese, chopped chives, and the crispy bacon.
Enjoy!