In a saucepan set over medium heat, melt the butter and whisk in the flour to create a smooth roux. Stir continuously for 1 to 2 minutes to cook off the raw flour taste.
Slowly pour in the cream, whisking constantly to prevent clumps. Continue to cook and stir until the mixture thickens slightly, about 4 to 5 minutes.
Incorporate the garlic powder, onion powder, paprika if using, and a pinch of salt and pepper. Take the pan off the heat and stir in 1½ cups of the shredded cheddar along with all of the mozzarella. Mix until the cheese is melted and the sauce is smooth.
Lightly coat the inner surface of the slow cooker with butter or nonstick spray. Spread a modest layer of the cheese sauce at the bottom.
Arrange a portion of the sliced potatoes evenly over the sauce, followed by a scattering of onion slices, a bit of crumbled bacon, and a spoonful or two of the cheese sauce. Continue layering these ingredients in the same order until all are used, ending with sauce on top. Sprinkle the reserved ½ cup of cheddar over the final layer.
Secure the lid and cook on high for 3 to 4 hours, or set to low for 6 to 7 hours, until the potatoes are tender when pierced with a fork.
Once cooking is complete, uncover the slow cooker and allow the dish to rest for 10 to 15 minutes, which helps the sauce settle and thicken.
Sprinkle with chopped parsley before serving. Additional crumbled bacon may be added for garnish if desired. Serve hot.