01 - Preheat oven to 375°F. Lightly grease a 9x13-inch baking dish.
02 - Place peeled and chunked potatoes in a large pot and cover with cold, salted water. Bring to a boil, then reduce heat and simmer for 15-18 minutes until fork-tender. Drain well.
03 - While the potatoes cook, heat olive oil in a large skillet over medium heat. Add sliced onions and sauté, stirring often, until golden and deeply caramelized, about 15-20 minutes. Add minced garlic during the last 2 minutes of cooking.
04 - Mash the drained potatoes with butter, warm milk, sour cream, 1 cup of the cheddar cheese, parmesan cheese, salt, and pepper until very smooth and creamy.
05 - Fold half of the caramelized onions into the mashed potato mixture. Taste and adjust seasoning with additional salt and pepper as needed.
06 - Spread the potato mixture evenly into the prepared baking dish. Top with the remaining caramelized onions and sprinkle the remaining 1/2 cup of cheddar cheese over the top.
07 - Bake uncovered for 20-25 minutes, or until the cheese is fully melted and bubbling.
08 - Let the casserole rest for 5 minutes. Garnish with fresh chives if desired, then serve warm.