Cut red potatoes in half creating 2 equal halves. Cut those halves in half again lengthwise creating quarters. Cut the quarters into ¼” quarter moons and place in a bowl of water to reduce oxidation.
Drain cut potatoes and place them in boiling water. Cook until just starting to soften, about 5 minutes. Drain.
Dice the bacon and add to a large stockpot set over medium-high heat.
Once the bacon is fully cooked and crispy add the garlic. TIP: Leave the bacon renderings for extra flavor.
Let garlic cook for 2 minutes or until just starting to brown.
Add the potatoes, chives, salt, and pepper and mix thoroughly. Let cook for 2 minutes. Watch carefully and adjust heat as needed not to burn.
Add water, milk and heavy cream. Whisk well.
Whisk in mashed potatoes and cheese until all the mashed potatoes have dispersed into the soup and cheese is completely melted. NOTE: Cheese will stick to the bottom of the pot and burn if not completely whisked in.
Turn heat to medium and let the soup simmer until the texture is velvety and smooth, about 20 minutes, whisking frequently.
Stir in Ranch dressing, garnish with Homestyle Bacon Ranch Sauce and serve.
Litehouse Homestyle Bacon Ranch Sauce:
Cook the bacon and place into a blender with the fat (this will add additional flavor).
Add the dressing and blend for 15 seconds. Remove the lid, scrape down the sides and blend for an additional 20 seconds.