To prepare all ingredients for the soup, dice onions into tiny pieces, dice baked potatoes and dice cooked bacon.
Preheat a pot with butter, add onions into it and cook until it's caramelized. Stir in flour and mix until the flour is spread evenly.
Pour milk & hot water into the cooking ingredients. When it starts simmering, add in diced potatoes and better than bullion. If necessary, season it with salt, but keep in mind that cheese and bacon have seasoning.
Let the ingredients simmer until creamy, for about 10 minutes. Serve with your favorite toppings.