Start by cooking your bacon until it's perfectly crisp. Once cooled, chop it into small, delicious pieces and set aside.
Next, peel your potatoes and cut them into even, bite-sized cubes. Place them in a large pot, cover with cold water, and bring to a boil. Reduce the heat and let them gently simmer for about 15 minutes, or until they are fork-tender. Drain all the water and return the tender potatoes to the pot.
Now, it's time to mash! Add the softened butter, light cream cheese, light sour cream, milk, onion powder, and garlic powder to the potatoes. Mash everything together until it's wonderfully smooth and creamy.
Gently fold in 1 cup of your shredded cheddar cheese and about two-thirds of the cooked bacon bits.
Lightly spray a 9x13 inch baking dish with non-stick spray. Spoon the mashed potato mixture evenly into the dish. Top with the remaining shredded cheese and bacon pieces.
Bake the dish in a preheated oven at 350°F (175°C) for 15 minutes, or until the cheese is beautifully melted and bubbly, and the potatoes are heated through.
For a final touch, sprinkle with fresh chopped chives just before serving. Enjoy this comforting and flavorful bake that's surprisingly easy to make!