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[–] MinorLeakage ago 

In my personal opinion, you should basically tell him exactly what you posted here. You like his work, you like him personally, and he's a great employee. However, when at work, he needs to remember you are his boss, not his friend. Part of that needs to come from you. If he thinks you WANT him offering his 2-cents on every single decision, he may have no idea it's frustrating you. You have to set the limits, and make him aware of them. It's likely he has no interest in pissing you off or stepping on your toes.

I think 99.9% of the time, reasonable people can just speak honestly to each other. And if it turns out he isn't reasonable, it's better to find out now, and not drag it out.