Select Sauté, 30 Minutes, temperature high, Press Start. Wait until the screen displays Hot.
Meanwhile season chicken with paprika, salt, and pepper.
When the pot is hot, add the diced bacon and cook until golden brown and crispy. Remove from the Instant Pot and set aside.
Sear the chicken breasts 3-4 Minutes per side, until golden brown. Transfer to a plate and set aside. Sear chicken in batches if needed so you do not overcrowd the pot.
In the meantime, place cream cheese and half the cheddar cheese in a mixing bowl and season with garlic powder, onion powder, dried dill weed, dried chives, salt and pepper; mix to combine.
On the Instant Pot press Cancel to stop sautéing.
Pour in the chicken broth and stir well, scrapping along the bottom of the pot. Add in cream cheese mixture and seared chicken breasts.
Close lid and seal. Select Slow Cook – Chicken – 4:00 Hours and press Start.
Remove lid and scoop out the chicken and shred.
Stir the shredded chicken back into the Inner Pot and sprinkle the rest of the cheddar cheese on top; place the lid back on the Instant Pot (powered off) and let stand for 5 minutes to thicken the sauce and melt the cheese.
Top with previously prepared bacon and fresh chives or scallions. Serve and enjoy!