Bacon Corn Soup

4 bacon strips
1 cup chopped onion
2 cups water
1-1/2 cups diced peeled potatoes
1 teaspoon chicken bouillon granules
1/4 cup all-purpose flour
2 cups milk, divided
1 cup half-and-half cream
1 package (16 ounces) frozen corn
8 ounces process American cheese, cubed
Salt and pepper to taste

In a large saucepan, cook bacon until crisp. Remove bacon; crumble and set aside. In the drippings, saute onion until tender.

Add water, potatoes and bouillon; cover and simmer until potatoes are tender. In a small bowl, combine flour and 1/4 cup milk until smooth.

Add flour mixture, cream, corn and remaining milk to soup; bring to a boil. Cook and stir for 2-3 minutes or until thickened.

Reduce heat; add cheese and bacon. Cook and stir until cheese is melted. Season with salt and pepper. Makes 6-8 servings (about 2 quarts).