Cook the chopped bacon in a large pot over medium heat until crispy.
Remove bacon and set aside, leaving about 2 tablespoons of bacon grease in the pot.
Add butter to the pot and allow it to melt.
Stir in onions and garlic to sauté until softened and fragrant.
Mix in flour, stirring constantly for about 1 minute to form a roux.
Gradually pour in chicken broth while stirring until it starts to thicken.
Add milk and continue stirring until you reach a smooth consistency.
Bring to a simmer but do not let it boil.
Add the baked potatoes and season with salt and black pepper.
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Reduce heat and gently fold in cheddar cheese until melted and well combined.