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Wash the potatoes and thinly slice them (about a quarter inch). Place the sliced potatoes into a steamer basket. Pour 1 ½ cups water into bottom of Instant Pot. Place the steamer basket into the Instant Pot.
Cover Instant Pot and secure the lid. Make sure valve is set to sealing. Set the manual/pressure cook button to 1 minute. When time is up move the valve to venting and remove the lid. Set the steamer basket aside. Dump out the water and dry out the pot.
Add the potatoes into the Instant Pot liner. Stir the mayo, sour cream onion powder, garlic powder, seasoned salt, pepper, onions, bacon and half of the cheddar into the potatoes. Stir gently to coat.
Then place the lid on top and set the lid to 350 degrees for 5 minutes. Add the rest of the cheddar and the parmesan on top and bake for another 2-3 minutes. If you want to bake in the oven then scrape the potato mixture into a 8×8 inch baking dish. Sprinkle the cheeses on top. Bake at 350 for 20 minutes.
Serve and enjoy!