Heat a large, wide pot or Dutch oven over medium heat. Cut the bacon into small pieces and cook it until it reaches your desired level of doneness (choose bacon quantity based on desired amount for topping later). Remove to a paper towel lined plate and leave the drippings in the pan.

Evaluate how much bacon grease is left in the pot (this will vary). You want about 2-3 tbsp, enough to thinly coat the bottom of the pot. If you have too much, spoon some out before proceeding. If you have too little, supplement with some veggie oil. Cook the onions in the bacon drippings until they soften, about 5 minutes, stirring occasionally.

Add potatoes, garlic, 1 teaspoon salt, and ¼ teaspoon pepper to the pot. Cook for about 5 minutes, stirring frequently.

Dust the flour over the mixture in the pot and stir until the ingredients are well-mixed, ~2 minutes.

Add milk and water and stir until well-mixed. Bring to a boil over high heat, and then reduce heat to medium-low and simmer.

The outsides of the potatoes will dissolve into the liquid, creating the rich creamy texture with small chunks of potato remaining. The longer you simmer, the more the potatoes will dissolve into the soup, I simmer for at least 30 minutes but sometimes longer. Stir occasionally to prevent potatoes from sticking to the pan's bottom.