Cut 2 pounds yellow potatoes into 1 to 1½" (2.5-4cm) pieces (My potatoes were quite small and I cut them into 8 pieces. If your potatoes are larger, you will need to cut them into more pieces).
Place the cut potatoes into a medium to large microwave-safe bowl and cover with a plate or microwave cover. Microwave on high for 4 minutes, then take out and stir or shake to redistribute the potatoes. Return to the microwave again for 3 more minutes. The potatoes should be mostly cooked through. Discard any liquid that has accumulated at the bottom of the bowl. (Alternatively, the potatoes can be par-boiled on the stovetop for 5-7 minutes).
While the potatoes are cooking, stir together 1 teaspoon kosher salt, 1 teaspoon smoked paprika, ½ teaspoon garlic powder, ½ teaspoon onion powder, ½ teaspoon freshly ground black pepper, and 1 pinch cayenne pepper (note that combining the spices before adding to the potatoes helps to ensure that the potatoes are evenly seasoned).
After draining the potatoes, stir in 1 Tablespoon olive oil, then sprinkle the spice mixture over the potatoes and toss until the seasoning is evenly distributed.
Cut four 8-10" (20-28cm) pieces of heavy duty aluminum foil. Divide the potatoes into 4 equal portions and place one portion onto the center of each piece of foil. Gather the long edges of the foil together and crimp together by folding them over twice. Crimp both of the sides shut as well. Repeat this process to close all of the foil packs.
Heat the grill over high heat until hot (10-15 minutes), scrape off the grates with a grill-scraper, and reduce the temperature to medium-high. Place the foil packs on the grill and cook for 5 minutes. Flip the packs over, and cook for 5 more minutes. Remove the packs from the grill and turn it off. Carefully open the foil packs and serve.
Make-Ahead Instructions
Cook and season the potatoes and assemble the foil packets by completing the recipe through step 5. Store the seasoned, par-cooked potatoes in their foil packets in the fridge for up to a day. Complete the remaining steps of the recipe just before meal time.