In a medium bowl toss together, cheese and flour. Set aside.
Select "Sauté" mode and adjust to more. Cook bacon until crisp. Remove bacon and drain on paper towels, reserving drippings in the pot.
Add onion and carrots to the pot; cook and stir for 2-3 minutes. Add garlic and cook for 1 more minute. Press “Cancel”.
Add milk, broth, potatoes, curry, and paprika; mix to combine.
Close lid and Select "Pressure Cook" mode adjust to 10 minutes. When cooking is complete press “Cancel” and carefully turn the vent to “Venting” to release the pressure. Then remove the lid.
Blend: For chunky texture: use an immersion blender, stand blender, to puree the soup until you reach the desired texture. For smooth and silky texture: Let the soup cool down a little. Transfer the soup to a blender and blend until smooth. Return to the instant pot.
Select "Sauté" mode and adjust to normal. Stir in cheese mixture. Cook and stir for 2-3 minutes until the cheese is melted. Taste for seasoning and adjust with more salt and pepper if necessary. NOTE: After I added the cheese mixture some lumps form. We wanted a really silky soup so I decided to blend the soup again. This step is totally optional.
To serve ladle soup into bowls. Top with crisp bacon, chopped chive, and sprinkle smoked paprika, if desired.