Preheat your oven to 350°F (175°C).

Wash and cut the baby potatoes in half, ensuring they’re all roughly the same size for even cooking.

In a large bowl, mix together melted butter, sour cream, ranch dressing mix, garlic powder, salt, and pepper until combined.

Add the halved potatoes to the bowl and toss them until well coated in the creamy mixture.

Spread the coated potatoes in a baking dish evenly.

Sprinkle the shredded cheddar and grated Parmesan cheese over the top of the potatoes.

Bake in the preheated oven for 30-35 minutes or until the potatoes are fork-tender and the cheese is melted and bubbly.

Garnish with chopped chives right before serving to add a fresh pop of color.