Place about 1 inch of water and butter in a large skillet and add cubed red potatoes then bring the water, butter and potatoes to a soft boil. Reduce heat and simmer for about 10 minutes or so until the cubed red potatoes are tender. Drain.
Coat pan with butter and spray with cooking spray. Add potatoes. Cook for 2-3 minutes. Add onion. Cook for 3-4 minutes more on medium heat until browned.
In a separate saucepan add flour, dressing mix, parsley, chive and a dash of salt. Mix well. Add sour cream, mix then add milk and mix well. Bring to a soft boil stirring occasionally. Cook for 1-2 minutes until thick. Pour over browned potatoes and mix until coated. Can add shredded cheese to melt over potatoes just before serving.