[Homemade] Loaded potato, bacon and cheddar soup

INGREDIENTS
4 slices bacon, diced
1 cup water
1 capfull of liquid smoke
2 tablespoons unsalted butter
1 small onion, finely chopped
2 celery stalks, finely chopped
2 tablespoons all-purpose flour
4 cups chicken stock
1 cup whole milk
1 cup heavy cream
4 russet potatoes, peeled and diced into 1/2-inch cubes
1 teaspoon paprika
1 teaspoon chicken bouillon powder
Salt and freshly pepper, to taste
2 cups cheddar cheese, shredded (divided)
For topping: sliced scallions, sour cream, extra cheddar, bacon