In a large pot, boil the potatoes and onion in chicken broth until tender.
In a separate saucepan, melt butter over medium heat. Stir in flour to form a roux.
Gradually whisk in heavy cream until smooth. Simmer until thickened.
Pour the cream mixture into the pot with potatoes and stir to combine.
Add shredded cheddar cheese and season with salt and pepper.
Simmer for 10-15 minutes, stirring occasionally, until flavors meld.
Serve hot, garnished with crumbled bacon and chopped chives.