Cut each potato in half and then half again making 4 pieces, add to the pot.
Add the minced shallots and pour enough chicken broth in the pot to cover the potatoes.
Seal the Instant Pot lid and cook on manual or soup setting for 10 minutes. (plan for 5-10 minutes for the Instant Pot to pre-heat)
Once the timer goes off, turn the valve from sealing to venting to release the pressure.
Remove the lid and gently mash the potatoes with a potato masher or large fork. You can also cut through them with a knife for chunkier pieces of potatoes.
Add butter, cream cheese, sour cream, cheddar cheese, salt and pepper, and blend to the consistency you like best.
Add milk to the soup and stir enough in until you get your desired soup thickness.
Add more salt and pepper if needed.
Add bacon bits to a small glass bowl and heat in the microwave for 30-60 seconds until crunchy.
Mix all of bacon bits into the potato soup, or use as a topping.
Serve with the toppings of your choice.