Preheat the oven to 375°F (190°C). Scrub the potatoes and cut into uniform chunks for even cooking.
Place the potato chunks in a large pot and cover with cold water. Add a generous pinch of salt and bring to a boil over high heat. Reduce to a simmer and cook until the potatoes are tender and easily pierced with a fork, about 15–20 minutes.
While the potatoes cook, crisp the bacon in a skillet over medium heat. Drain on paper towels and crumble when cool. Reserve a tablespoon of bacon fat if you like to add a smoky note to the mash.
Drain the potatoes well and return them to the hot pot. Add butter, cream cheese, sour cream, milk, garlic powder, salt, and pepper. Mash using a potato masher or ricer until smooth and creamy. Taste and adjust seasoning.
Fold in half of the crumbled bacon and half of the chopped chives into the mashed potatoes, reserving the rest for the topping.
Spoon the mashed potatoes into a lightly greased 9x13-inch baking dish, smoothing the top. Sprinkle the shredded cheddar evenly over the surface, then top with remaining bacon and chives.
Bake for 20–25 minutes, or until the cheese is melted and bubbly and the edges are golden. For a deeper golden top, broil for 1–2 minutes, watching carefully to avoid burning.
Remove from the oven and let rest for 5 minutes before serving. Garnish with extra chives and a drizzle of reserved bacon fat or olive oil if desired.