Preheat your oven to 350°F.
While the oven is heating, clean and dry the baking potatoes.
Place them on a roasting tray and bake for about 45 minutes until a knife can easily pierce them.
Cook the bacon over medium heat in a large skillet until crispy.
Remove the bacon and reserve a few tablespoons of the bacon fat for later.
Let the bacon cool, then crumble it.
In a large pot, add the bacon fat and gradually mix in the flour to form a roux.
Stir continuously over medium heat until smooth.
Slowly add warm milk, stirring constantly until the mixture thickens.
Add the grated cheddar cheese to the pot and stir until melted and smooth.
Add salt and pepper to taste.
Mix in the baked potatoes, using a spoon or potato masher to break them into chunks within the soup.
Stir in the crumbled bacon, reserving some for garnish.
Serve hot with a sprinkle of cheese and bacon on top.