Position a rack in the center of the oven and preheat to 375°F. Lightly butter or spray a 9×13-inch baking dish.
Spread the frozen hash browns on a sheet pan to take the chill off while the oven heats (5–10 minutes). Break up any clumps with your hands.
Melt the butter in a skillet over medium heat. Add the diced onion and a pinch of salt; cook, stirring, until translucent and just tender, 4–5 minutes. Remove from heat and let cool 2 minutes.
In a large bowl, whisk together the cream of chicken soup, sour cream, garlic powder, smoked paprika, kosher salt, and black pepper until smooth. Stir in the warm onions and 1 1/2 cups of the cheddar until the cheese just begins to melt into the sauce.
Fold the hash browns into the sauce until every shred is coated. Scrape the mixture into the prepared baking dish and level the top. Cover tightly with foil.
Bake covered for 20 minutes. Remove the foil, stir the casserole once to redistribute heat and creaminess, smooth the surface, and sprinkle the remaining 3/4 cup cheddar evenly over the top.
Return to the oven and bake uncovered until bubbling at the edges and lightly golden, 18–22 minutes. For extra color, broil for 1–2 minutes, watching closely.
Rest 10 minutes so it sets for clean scoops. Finish with chives and serve hot.