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Preheat your oven to 350 degrees F. Spray a 9x13 casserole with cooking spray.
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Cut the potatoes into 1/2 cubes. Place them in a large pot and cover with water. Bring to a boil over high heat. Cook for 10-12 minutes or until the potatoes are almost tender. Drain.
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Grease a 13×9 inch casserole dish.
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In a mixing bowl combine the cream of mushroom soup, milk, ranch dressing, 1 cup of the cheese, and salt and pepper to taste.
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Pour the mixture over potatoes in the casserole dish.
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Sprinkle the remaining cup of cheese and the crumbled bacon over the top.
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Place into the oven and bake uncovered for 25-30 minutes or until the potatoes are tender.