Put the potatoes and water in a microwave-safe covered bowl with a vent. Microwave on high for 6 to 8 minutes until nearly tender, then drain and let steam dry for 2 minutes.
Meanwhile, brown the beef and onion in a large skillet over medium-high heat for 7 to 8 minutes, cooking the beef to 160°F. Transfer to a bowl.
Heat the oil in the skillet. Add the potatoes in a broad layer and cook for 5 to 6 minutes, turning once, until their cut faces brown.
Return the beef and onion. Add paprika, garlic powder, salt and pepper and toss over the heat for 1 to 2 minutes.
Scatter cheddar over the surface, cover for 1 minute until melted, then add the chives and serve from the skillet.