Make bacon by preheating oven to 400 degrees.
Line a rimmed baking sheet with tin foil (optional, but allows for easy cleanup), and lay out 8 bacon slices on the sheet. Bake in the oven for 18-20 minutes or until it's cooked to your liking. Chop bacon.
Melt butter in large pot. Add remaining ingredients (except cheese, salt and pepper).
Cook on medium heat for 30 minutes or until potatoes are tender.
Add 1 1/2 cups cheese, salt and pepper and bacon pieces before serving.
Use reserve cheese to sprinkle on top.