Pierce the potatoes with a fork. Place them on a microwave- safe plate and microwave them for 8-10 minutes. (Check how firm they are after 8 minutes- they should be pretty soft. If they aren't put them in for an additional 2 minutes.)
While potatoes are cooking, melt butter in a medium sized saucepan. Add in onion powder, a few shakes of salt and pepper and the broth. Increase the heat to medium high, until broth begins boiling. Once it's boiling, turn heat down to medium and add in the potato flakes. Whisk until they're incorporated. Add in milk. Continue heating on medium, turning heat down if it looks like it's about to boil.
When the potatoes are done, transfer to a cutting board. Using a hot pad, you're going to quickly dice the potatoes. They don't have to be perfect- just dice them up using the hot pad to help hold them so you don't burn your hands.
Add the cut potatoes to the soup. Using your whisk, just smash them up a bit more while in the soup. You don't want to get rid of all of the potato chunks, just mash it up a bit to get rid of some.
Add in half the crumbled bacon and the cheese. Stir until melted.
Serve, topped with remaining bacon bits, cheese, sour cream and chives.