Cook the Bacon. Start with a very large pot. Add the bacon and cook until crisp and browned. Remove the bacon from the pot and set it aside, leaving the drippings in the pan.
Add Butter. Add butter to the bacon grease and let it melt.
Saute Onion and Garlic. Then add onion and garlic. Cook for a few minutes until onions are soft and fragrant. This should take about 5 minutes.
Time to make the roux. This is what will thicken your soup. Sprinkle flour over the onion and garlic. Stir well and let it cook for a few minutes.
Add the Liquids. Whisk in the milk slowly until smooth, then pour in the chicken broth and water. Stir well to combine.
Add cream of mushroom soup and seasonings. Mix until combined.
Add potatoes. Bring to a boil, then reduce the heat to a simmer until the potatoes are tender, about 20 minutes, or until you can pierce them with a fork. Stir constantly to avoid sticking.
Serve. Ladle into bowls and top with crispy bacon and shredded cheese. Pair with warm cornbread or crusty bread for a delicious meal.
Notes
This makes a very large pot of soup. Choose the right-sized soup pot for this recipe.
Use Yukon Gold, Red, or Russet potatoes for this baked potato soup.
Don't skip the roux. This is key to making the soup creamy and thick.
Serve the bacon on top of each bowl, or mix it into the soup before serving.
To Store and Reheat Leftovers
Refrigerate: Store leftovers in an airtight container for up to 4 days.
Freeze: Cool completely and freeze in containers for up to 3 months. Freeze in portions in separate containers.
Reheat: Warm on the stovetop, adding a splash of milk or water to thin a bit if it's too thick.