In a large pot or Dutch oven, melt the butter and olive oil together over medium heat.

Add the chopped onions and sauté for 5-7 minutes, until they begin to soften and turn translucent.

Stir in the garlic and cook for another minute until fragrant.

Sprinkle in the paprika, stirring constantly for 1-2 minutes. This step toasts the spice and deepens its flavor, so don't skip it!

Pour in the water or vegetable broth, scraping up any browned bits from the bottom of the pot.

Briefly pulse the tomatoes in a blender or food processor until partly puréed and partly chopped.

Add the tomatoes, green chili strips, cubed potatoes, ground cumin, and chopped cilantro to the pot.

Stir everything to combine.

Bring the soup to a boil, then reduce the heat to low, cover, and let it simmer for about 30 minutes, or until the potatoes are fork-tender.

Taste the soup and season generously with salt until the flavors pop.

To serve, cut the Monterey Jack cheese into small cubes and divide it among four bowls. Ladle the piping hot soup directly over the cheese, allowing it to get wonderfully melty.

Serve immediately and enjoy!

Garnish with a dollop of sour cream, a sprinkle of extra cilantro, or a few slices of fresh avocado for extra richness.