• Wash and dice the potatoes into bite-sized cubes and add them into a bowl. Pat the potatoes dry with a paper towel for crispier results.
• Toss potatoes with olive oil, then add in all of the seasonings: smoked paprika, garlic powder, onion powder, chili powder, salt, and pepper. Make sure the potatoes are coated evenly.
• Add the seasoned potatoes to your air fryer basket (check the notes below for alternative cooking methods). Cook on the air fry setting, 400°F for 15–18 minutes, shaking the basket halfway through.

Cheese Sauce

• Melt your butter in a medium skillet or saucepan over medium heat. Whisk in flour and cook for 1 minute until bubbly (this thickens the sauce).
• Slowly whisk in your heavy cream or whole milk until there are no more lumps of flour. Let it simmer for 2–3 minutes, stirring constantly, until slightly thickened. Add more milk if it gets too thick, you want it to be slightly runnier than yogurt.
• Reduce the heat to low and stir in the shredded cheddar cheese, a handful at a time. Keep stirring until it's fully melted and creamy.
• Add in the garlic powder, onion powder, chili powder, and salt and stir it in until everything is fully combined. Remove the cheese sauce from the heat, and serve right away.

Serving Cheesy Fiesta Potatoes

• Once the potatoes are cooked and crispy, transfer potatoes to a serving dish and drizzle generously with the warm nacho cheese sauce.
• Add dollops of sour cream and sprinkle with green onions or jalapeños for the full cheesy fiesta potatoes experience. And Enjoy!