Prepare the potatoes: Wash the baby potatoes thoroughly under cold water to remove any dirt. Place them in a large pot and cover with water. Bring to a boil over medium-high heat and cook for 12–15 minutes, or until the potatoes are tender when pierced with a fork but not falling apart. Drain well and let them cool slightly.
Smash the potatoes: Line a baking sheet with parchment paper or lightly grease it. Place the boiled potatoes on the sheet. Using the bottom of a sturdy cup or a potato masher, gently press down on each potato until it flattens to about 1/2-inch thick. Be careful not to smash them completely into pieces—keep some texture intact.
Season the potatoes: Drizzle olive oil generously over the smashed potatoes, ensuring each one is lightly coated. Sprinkle garlic powder, paprika, salt, and black pepper evenly over the top. If using Parmesan, sprinkle it now for a crispy, savory finish.
Air fry the potatoes: Preheat the air fryer to 400°F (200°C) for 3–5 minutes. Carefully place the smashed potatoes in a single layer in the air fryer basket. Cook for 12–15 minutes, flipping halfway through, until the potatoes are golden brown and crispy on the edges while remaining soft in the center.
Serve and garnish: Transfer the crispy smashed potatoes to a serving platter. Sprinkle with fresh chopped herbs for a burst of color and freshness. Serve immediately as a delicious side dish or snack—perfect for dipping in ketchup, aioli, or your favorite sauce.