Arrange potatoes evenly on a microwave-safe plate. Microwave on high until just tender, about 4 minutes. Let cool to room temperature. Cut potatoes into bite-sized chunks.
Heat butter and olive oil in a nonstick skillet over medium-high heat until butter melts and starts to turn brown. Swirl the pan and add potatoes; shake the pan to arrange in an even layer. Season with paprika, cayenne, garlic powder, onion powder, salt, and pepper.
Continue to toss potatoes and cook until reddish-brown, crusty, and crispy on the edges, 10 to 12 minutes. If potatoes are cooking too quickly, reduce the heat to medium. Garnish with chives.