Peel your Yukon Gold potatoes and chop them into uniform ½-inch cubes. Rinse the cubed potatoes under cold water to remove excess starch. Set aside.

Place a large pot or Dutch oven over medium heat. Add the butter (or olive oil/butter combination). Once melted, add the finely chopped yellow onion and sauté for 5-7 minutes until softened.

Add the minced garlic to the pot, cooking for another 1-2 minutes until fragrant. Be careful not to burn the garlic.

Sprinkle the all-purpose flour over the sautéed onions and garlic. Stir continuously for about 1-2 minutes, creating a roux to thicken the soup.

Gradually whisk in the chicken or vegetable broth, ensuring a smooth mixture by scraping the bottom of the pot.

Add the rinsed potato cubes to the pot and stir well. Bring to a gentle simmer, cover, and cook for 15-20 minutes until the potatoes are tender.

Carefully ladle about half of the soup into a blender and blend until smooth. Pour back into the pot with the remaining chunky soup.

Reduce the heat to low and slowly pour in the whole milk and heavy cream, stirring constantly. Add the fresh parsley, chives, and thyme, allowing to heat through for about 5 minutes.

Remove the pot from heat entirely. Gradually add the shredded cheddar cheese, stirring continuously until fully melted.

Taste and season with salt, freshly ground black pepper, and optional cayenne pepper or smoked paprika.

Ladle the hot soup into bowls. Garnish with crumbled bacon, extra cheese, sour cream, fresh chives, or croutons. Enjoy immediately!