Preheat your oven to 400°F (200°C).
In a large bowl, toss the halved baby potatoes with olive oil, garlic powder, onion powder, paprika, salt, and pepper until evenly coated.
Spread the seasoned potatoes in a single layer on a baking sheet. Roast in the preheated oven for 25-30 minutes, or until golden and tender, flipping halfway through.
While the potatoes are roasting, in a saucepan over medium heat, combine the heavy cream, milk, and cayenne pepper (if using). Stir until heated through but not boiling.
Remove the saucepan from the heat and stir in the shredded cheddar cheese until melted and smooth.
Once the potatoes are done roasting, transfer them to a serving dish and pour the cheese sauce over the top.
Garnish with chopped fresh parsley before serving.