Preheat the oven to 350 degrees.
Put your cut potatoes in a pot of heavily salted water on the stove and bring to a boil. Let the potatoes simmer in the water until they can be easily pierced with a fork.
Drain them and leave them in the pot without a lid so that they are not wet anymore.
In a large mixing bowl, combine softened butter, sour cream, salt, and garlic powder. mix until thoroughly combined.
Add chopped bacon and 1 cup of the cheddar cheese to bowl.
Toss the potatoes in the mixing bowl, stirring until the potatoes are thoroughly coated.
Pour the potatoes and the mixture into a 9x13 baking dish.
Top with remaining ¼ cup cheddar cheese and chives.
Bake covered at 350 degrees for 30 minutes. If you want a golden and crispy top, you can broil on low for an additional five minutes without the cover