Cheesy Loaded Potato Bites

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1 1/2 pounds marble or baby potatoes

2 tablespoons olive oil 

Kosher salt and freshly ground black pepper 

3/4 cup milk 

1/4 teaspoon garlic powder 

1/4 teaspoon onion powder 

1/8 teaspoon cayenne pepper 

One 8-ounce bag shredded processed cheese (or 8 ounces processed cheese, cut into small cubes)

6 slices crisp-cooked bacon, crumbled 

2 tablespoons sliced chives