Preheat your oven to 350 degrees F (175 degrees C).

Fill a large pot with water, add a pinch of salt, and bring to a boil. Carefully add the peeled potatoes and cook until they are fork-tender, about 20 to 25 minutes.

Drain the potatoes and place them in a large mixing bowl. Add 1/4 cup of softened butter and mash the potatoes until they're smooth.

Fold in the sour cream and cream cheese to the mashed potatoes until the mixture is creamy and well combined.

Stir in 2 cups of shredded cheddar cheese until evenly distributed.

Transfer the potato mixture to a 9x13-inch baking dish, spreading it out evenly.

Top the potatoes with the remaining 1 cup of shredded cheddar cheese, dot with the 2 tablespoons of butter pieces, and sprinkle with bacon bits.

Bake in the preheated oven for 20 to 25 minutes, or until the cheese is melted, bubbly, and the edges start to turn golden brown.