If starting with whole potatoes, peel if desired, then dice them small. Boil in a medium pot until tender (poke them with a fork to check doneness). Drain and set aside. (Mash if you like or keep them as diced)
If using fresh corn, carefully remove the kernels from the cobs with a sharp knife. (If you have not done this before, HERE is a short video with instructions! Cobs can be used for stock or composted.) MEANWHILE heat butter in a large pot on medium heat.
Add onion to the melted butter. Cook, stirring occasionally, for about 10 minutes.
Add corn and red pepper; cook for 5 minutes.
Add milk and broth to the veggies.
Stir cooked potatoes into the soup and mix well.
Stir in basil, powdered mushrooms, salt, and smoked paprika.
Reduce heat to medium-low and cook for another 10 minutes to let the flavors mingle (do not allow to boil).