Peel potatoes and cut into large chunks. Place potatoes in a large pan, cover with water, and set on stove on high until the potatoes begin to boil, and then turn down until the potatoes boil gently. Cook potatoes for 10-15 minutes or until the potatoes are soft. Drain potatoes and place back into pot. Add butter, sour cream, heavy cream, salt, and cream cheese into pot and mix with a mixer until smooth and creamy. Place potatoes in an 8 x 8 pan, top with cheddar cheese, bacon, and place into a 350 degrees oven for approximately 30 minutes or until the cheese melts. When you remove the potatoes from the oven top with chives.
I have found that cooking the bacon in the oven keeps the mess down and by laying it on a cookie sheet, the bacon cooks up crisp and flat. I have been baking the bacon in the oven, since a restaurant cook told me this is how you get crispy flat bacon. You simply bake it for 10-15 minutes on 425 degrees until it is nice an brown.
If you want to serve this later, you can top with cheese and cover with foil, and then reheat for approximately 45 minutes at 350 degrees.