Start by peeling and dicing the potatoes into bite-sized pieces.
Place the diced potatoes in a pot and cover them with salted water. Bring the water to a boil over medium-high heat.
Once boiling, reduce the heat to medium-low and let the potatoes simmer for about 10-15 minutes or until they are fork-tender. Be careful not to overcook them.
While the potatoes are cooking, prepare the dressing. In a mixing bowl, combine the mayonnaise, yellow mustard, and fresh lime juice. Stir well to combine.
Once the potatoes are cooked, drain them thoroughly and allow them to cool slightly.
In a large mixing bowl, add the cooled potatoes, diced onion, and diced green pepper.
If you desire some heat, finely chop the Scotch bonnet pepper and add it to the bowl. Adjust the amount according to your preference for spiciness.
Pour the prepared dressing over the potato mixture and gently toss until all the ingredients are evenly coated.
Transfer the potato salad to a serving dish.
To garnish, slice the hard-boiled egg and arrange the slices on top of the salad. Sprinkle some paprika over the salad for color and flavor.
Chill the potato salad in the refrigerator for at least an hour before serving to allow the flavors to meld together.
Serve cold as a delicious side dish at your next gathering or as a refreshing addition to any meal.