Place small skillet over medium-low heat and fry bacon until crisp. Remove from pan with slotted spoon and drain on paper towels. Set aside.
Add cabbage to bacon fat in pan; toss to coat. Slowly let cabbage wilt; add bacon back to pan. Season with salt and freshly ground black pepper.
Remove from heat and add chives, reserving small portion for garnish.
Generously butter bottom and sides of ovenproof casserole dish.
In large bowl, combine potatoes, buttermilk, 1 cup of Parmesan and dressing mix. Season with salt and freshly ground black pepper.
Using hands, place layer of potatoes in casserole dish. Sprinkle with Parmesan and repeat with two more layers. Spoon cabbage mixture on top and spread evenly over potatoes. Top with two more layers of potatoes and Parmesan. Sprinkle with remaining Parmesan. Cover dish with aluminum foil; bake for 1 hour. Remove foil and bake for additional 30 minutes, until golden brown. Rest for 10 minutes before serving.