Preheat your oven to 350 degrees Fahrenheit.
Peel potatoes and cut into 1 inch chunks. Place in a large pot and add enough cold water to cover. Bring to a boil and reduce to simmer. Cook until tender and easily pierced with a paring knife, about 15 minutes. Drain and put in a large bowl.
Using a mixer beat potatoes until light and fluffy. Add cream cheese, butter, sour cream and stir until combined and smooth. Add 2 cups cheddar cheese, half the bacon bits, salt and pepper. Mix until well combined.
Transfer to a butter 3 qt baking dish. Top with remaining ½ cup of cheddar cheese and bacon bits. Bake for 30 minutes or until the potatoes are heated through and the top is slightly golden brown.
Remove from oven and serve immediately.
