Cut potatoes into 1-inch cubes and place them in a large pot covered with cold water and a pinch of salt. Bring to a boil over high heat. While the potatoes come to temperature, cook the bacon in a skillet over medium heat until crisp, then transfer to a paper towel-lined plate to drain. Once cooled slightly, crumble the bacon into bite-sized pieces. This parallel cooking saves time and ensures both components are ready simultaneously.
Once the water reaches a boil, reduce heat to medium and simmer for 8-15 minutes until the potatoes are fork-tender but still hold their shape. Drain thoroughly in a colander, then rinse with cold water to stop the cooking process and remove excess starch. Transfer to a large mixing bowl and let cool to room temperature—this prevents the warm potatoes from wilting the cheese and allows the dressing to coat evenly without becoming too warm.
In a small bowl, whisk together the sour cream, ranch seasoning packet, and garlic powder until smooth and fully combined. I like using sour cream as the base here because it creates a creamy, tangy dressing without any mayo, keeping the texture light while still binding everything together beautifully.
Add the crumbled bacon from Step 1, shredded cheddar cheese, and green onions to the cooled potatoes. Pour the ranch dressing from Step 3 over the mixture and add freshly cracked black pepper to taste. Gently fold everything together until well combined, being careful not to break up the potatoes too much. I find that folding rather than stirring vigorously keeps the potato pieces intact for better texture.
Transfer the salad to a serving bowl and refrigerate for 30-60 minutes before serving. This resting time allows the flavors to meld and the dressing to fully coat all the ingredients. The cold temperature also helps the cheese set slightly, creating a more cohesive texture.