In a mixing bowl, combine the sour cream, heavy cream (or milk), melted butter, minced garlic, smoked paprika, cayenne pepper (if using), salt, and pepper. Stir well until everything is mixed and creamy.
Add the shredded cheddar cheese and grated Parmesan cheese to the mixture, reserving a little cheddar for the topping.
Step 3: Assemble the Casserole
In a large mixing bowl, toss the diced potatoes with the creamy sauce mixture until they are well-coated.
Transfer the coated potatoes into a greased 9×13-inch baking dish, spreading them out evenly.
Sprinkle the crumbled bacon over the top, along with any reserved shredded cheddar cheese.
Step 4: Bake the Potatoes
Cover the baking dish with aluminum foil and bake in the preheated oven for 30-35 minutes, until the potatoes are tender.
Remove the foil and bake for an additional 10-15 minutes, or until the top is golden and bubbly. This step helps create a slight crust on top that gives a great texture contrast to the creamy interior.
Step 5: Garnish and Serve
Once out of the oven, let the casserole sit for a few minutes to cool slightly and set.
Sprinkle with chopped green onions or parsley for a fresh burst of color and flavor.
Serve warm as a side dish for roasted meats, BBQ, or any hearty main course.