Preheat the oven: Set your oven to 400°F (200°C) and line a baking sheet with parchment paper.
Prepare the potatoes: In a bowl, toss the diced potatoes with olive oil, garlic powder, paprika, salt, and black pepper until evenly coated.
Bake the potatoes: Spread the potatoes on the baking sheet in a single layer. Bake for 30 minutes or until crispy and golden brown, flipping halfway through.
Melt the cheese: While the potatoes are baking, melt the shredded cheddar cheese in a small saucepan over low heat. Stir occasionally until smooth.
Assemble the dish: Remove the baked potatoes from the oven and transfer them to a serving dish. Drizzle the melted cheese over the potatoes.
Add toppings: Dollop with sour cream and garnish with green onions and jalapenos if desired.
Serve: Enjoy your homemade Cheesy Fiesta Potatoes while warm!
Notes
You can customize the spice level by adjusting the jalapenos or adding a dash of hot sauce to the cheese sauce.