Step 1

In a Dutch oven, cook the bacon over medium heat until crips. Using a slotted spoon, remove to paper towels to drain.

Step 2

In the bacon drippings, saute onion and carrots until tender.

Step 3

Stir in flour until blended. Gradually add milk and water. Bring to a boil, cook and stir for 2 minutes or until thickened.

Step 4

Add the potatoes, corn, bouillon and pepper. Reduce heat, simmer, uncovered, for 20 minutes or until potatoes are tender.

Step 5

Add cheese and ham, heat until cheese is melted. Stir in bacon.