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Fry the bacon until crisp, and chop. Drain and use paper towel to soak up excess fat.
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In a large pot saute the onion and garlic with 2 tbsp bacon drippings. Add the potatoes, water, bouillon cubes to pot.
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Heat to boiling, then cover and simmer until potatoes are cooked, then add bacon.
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Mix the flour with a small amount of evaporated milk, making a paste. Gradually stir in remaining milk. Add to the potato mixture.
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Cook over medium heat until the mixture comes to a boil and thickens. Stir often to ensure the soup doesn't burn on the bottom of the pot.