Clean the Yukon Gold potatoes under cold water and cut them into 1-inch cubes—keeping the skin on adds texture and nutrients. Place the diced potatoes in a large pot and cover with cold water by about 2 inches. Bring to a boil over high heat, then reduce to a simmer and cook for 10-15 minutes until the potatoes are just fork-tender but still holding their shape; you want them cooked through but not mushy or falling apart. Drain the potatoes in a colander and spread them out on a clean kitchen towel or paper towels to cool to room temperature, which will prevent the dressing from becoming watery.
While the potatoes cool, whisk together the sour cream, mayonnaise, apple cider vinegar, salt, black pepper, garlic powder, and smoked paprika in a medium bowl until smooth and well combined. The vinegar and spices will start to bloom and meld together, creating a flavorful base. I like to taste the dressing at this point and adjust the seasoning if needed—add a touch more salt or vinegar if it needs brightness, since the potatoes will absorb some of the flavor as they sit.
In a large serving bowl, combine the cooled potatoes from Step 1 with the crumbled crispy bacon, sliced green onions, and shredded sharp cheddar cheese. Pour the creamy dressing from Step 2 over the potato mixture and gently fold everything together using a spatula or wooden spoon, being careful not to crush the potatoes. I prefer to fold rather than stir vigorously to keep the potato pieces intact and maintain a nice chunky texture. Let the salad rest for 10-15 minutes before serving so the flavors can meld together.
Transfer the potato salad to a serving dish. This salad is delicious served warm right after assembly, but it's equally good served chilled—simply cover and refrigerate for up to 2 days. If you're making it ahead, I recommend holding back a quarter of the green onions and bacon to sprinkle on top just before serving so they stay fresh and don't get soggy.