Cook bacon until crispy then coarsely chop it up. In a large bowl, mix flour, baking powder, salt and pepper together. Add coarsely chopped bacon, chives, 1 cup of cheddar and potatoes and mix to combine. Add sour cream, milk and eggs and stir until just combined- do not overmix.
Lightly grease a muffin tray. Spoon ~1/4 cup of batter into each of the muffin tins. Sprinkle the tops of the muffins with the last ? cup of cheddar. Bake for 20 minutes, until the muffins have risen and a toothpick inserted into the center of one comes out clean.