01 - Preheat oven to 375°F. Lightly grease a 9x13-inch baking dish.
02 - Place potatoes in a large pot and cover with cold, salted water. Bring to a boil, then reduce heat and simmer for 15-18 minutes, until fork-tender. Drain well.
03 - While the potatoes cook, heat olive oil in a large skillet over medium heat. Add sliced onions and sauté until golden and caramelized, about 15-20 minutes, stirring frequently. Add minced garlic during the last 2 minutes of cooking.
04 - Mash the drained potatoes with butter, warm milk, sour cream, 1 cup of cheddar cheese, Parmesan, salt, and pepper until very smooth and creamy.
05 - Gently fold half of the caramelized onions into the mashed potato mixture. Taste and adjust seasoning as needed.
06 - Spread the mashed potato mixture evenly into the prepared baking dish. Top with the remaining caramelized onions and the rest of the cheddar cheese.
07 - Bake uncovered for 20-25 minutes, or until the cheese is melted and bubbling.
08 - Let the casserole cool for 5 minutes. Garnish with fresh chives if desired, then serve.