To begin, wash and cut the red potatoes into 1 inch chunks. Place them in a pot and cover with enough water to go over them by an inch. Add in a half teaspoon of salt. Bring the potatoes to a boil, reduce the heat, and cook until they are just fork tender, about 8-10 minutes.
While the potatoes are cooking, cook the bacon until crispy. Pat with paper towels to remove the excess oil and then cut the bacon into pieces. Set it aside for now. Once the potatoes are cooked, drain them in a colander and let them cool for about 20 minutes.
While they are cooling grate the cheese and mince your onion.
Place the onion in a mixing bowl along with the mayonnaise, ranch dressing, milk, salt & pepper. Mix these all together.
Add in your cooled potatoes. Stir to coat.
Add in the diced bacon and shredded cheese. Stir it all together.
Put the potato salad in a serving bowl and sprinkle with 1/2 teaspoon each of paprika and parsley.
Cover with plastic wrap and chill in the fridge for an hour or overnight.