Peel and cut potatoes into 1-inch chunks, then set aside. Dice the onion and mince the garlic cloves. Cook the bacon strips in a skillet until crispy, then crumble and set aside for garnish. Having everything prepped before you start cooking ensures the Instant Pot process runs smoothly without interruption.

Set the Instant Pot to sauté mode and melt the butter. Add the diced onion and cook for 3-4 minutes until softened and fragrant. Stir in the minced garlic and cook for 1 minute longer, allowing the aromatics to release their flavors and create the foundation for the soup's taste.

Pour in the chicken broth and cream of chicken soup, stirring well to combine. Add the prepared potatoes from Step 1, along with salt, black pepper, and smoked paprika. Stir to distribute everything evenly, then close the lid and cook on high pressure for 10 minutes. This cooking time will soften the potatoes while building a rich, cohesive base.

Once the cooking time is complete, carefully perform a quick release of pressure. While the pot is still on sauté mode, whisk together the milk and flour in a small bowl until smooth—this prevents lumps from forming in the soup. Slowly pour this mixture into the hot soup while stirring constantly, then let it sauté for 4-5 minutes to thicken. I always make sure the milk is at room temperature so it doesn't shock the hot soup and curdle.

Turn off the sauté function and stir in the shredded cheddar cheese, mixing until completely melted and incorporated. For the best melting, I always shred the cheese from a block rather than using pre-shredded varieties, as they contain anti-caking agents that prevent smooth melting. Taste and adjust seasoning if needed before serving.

Ladle the soup into bowls and garnish generously with the crumbled bacon from Step 1, sliced green onions, and additional shredded cheddar cheese for that classic loaded baked potato experience.