Preheat your oven to 400°F (200°C) and line a baking sheet with parchment paper, if desired.
Wash and scrub the baby potatoes thoroughly. Cut them in half or quarters to ensure even cooking.
In a mixing bowl, combine the olive oil, ranch dressing, garlic powder, onion powder, paprika, salt, and pepper. Stir until well mixed.
Add the cut potatoes to the bowl and toss them in the seasoning mixture until fully coated.
Spread the coated potatoes in a single layer on the prepared baking sheet.
Roast the potatoes in the preheated oven for about 30 minutes or until they are golden brown and crispy, stirring halfway through.
Sprinkle the shredded cheddar cheese evenly over the potatoes during the last 5 minutes of cooking to allow it to melt.
Remove from the oven and garnish with chopped fresh parsley if using.
Serve immediately and enjoy!