In a large pot or Dutch oven, melt butter over medium heat. Add the sliced kielbasa and cook until browned. Remove and set aside. In the same pot, sauté the onions and garlic until fragrant.

Pour in the chicken broth and add the diced potatoes, smoked paprika, thyme, salt, and pepper. Bring to a boil, then reduce heat and simmer for about 15-20 minutes until potatoes are tender.

Lower the heat and stir in the heavy cream and shredded cheddar cheese. Mix well until the cheese melts into the broth, creating a creamy texture.

Return the kielbasa to the pot and let everything simmer for 5 more minutes. Adjust seasoning if needed. Garnish with fresh parsley and serve hot!