Twice Baked Potato Casserole. Directions 1. Preheat oven to 350 degrees. Peel potatoes, and cut into 1-inch chunks. Place in a large saucepan, and add enough cold water to cover by about 2 inches. Bring to a boil over medium-high heat, and reduce to a simmer. Cook until tender and easily pierced with a paring knife, about 20 minutes. Transfer to a colander to drain; return to pan, cover, and set aside. 2. Meanwhile, heat a large skillet over medium heat. Add bacon, and cook until crisp and browned, turning once. Transfer to paper towels to drain; let cool, and crumble into pieces. 3. Using a fork, mash the potatoes in pan until light and fluffy. Add the cream cheese, butter, and sour cream, and stir until combined and smooth. Add the chives, 2 cups cheddar cheese, half the bacon, salt, and pepper. Stir until well combined. 4. Transfer to a buttered 3-quart baking dish. Top with remaining 1/2 cup cheddar cheese. Bake until top is slightly golden and potatoes are heated through, about 30 minutes. Remove from oven; garnish with remaining bacon. Serve immediately.