Baked Potato Soup

3 large potatoes, baked: peel them, mash two and dice one of them.
1 onion, chopped
8 slices bacon
1/2 c. flour
3 or 4 c. milk
1 c. water
2 c. whipping cream
1/4 c dried parsley flakes
1 1/2 tsp. dried basil
1 1/2 tsp salt
1 1/2 tsp pepper
1 c. grated cheddar cheese (sometimes more)

Fry bacon, crumble and set aside. Fry onions in bacon drippings until transparent. Add flour, stirring to prevent lumps. Add milk and water, gradually, stirring , until it begins to thicken. Reduce heat to simmer, add potatoes, cream (rinse container with a little water and add) bacon (reserving a little for garnish) parsley, basil, salt and pepper. Simmer for 5 minutes, do not boil. Add cheese (reserving some for garnish) and stir until melted.
Garnish with crumbled bacon and cheese.

Serve with hot buttered cornbread!