There is this restaurant, O'Charley's that we found here in SC that has delicious baked potato soup and I tried to replicate it... it was not to shabby if I do say so myself!! Now if I can learn how to make their yummy rolls!!! :)
This recipe is adapted from: http://www.cdkitchen.com/recipes/recs/524/OCharleys_Baked_Potato_Soup35418.shtml
Baked Potato Soup
3 lbs red potatoes
1/4 cup margarine
1/4 cup flour... I'd use a little less next time it was a little too thick, just add it to margarine until it is smooth
8 cups half and half
16 oz Velveeta cheese, melted
white pepper to taste ( I just used black because we don't have white pepper!)
garlic powder to taste
1/2 lb bacon, fried crisply
1 cup cheddar cheese, shredded
Cut unpeeled potatoes into strips and place in a large pot, cover with water and bring to a boil. Cook it for 10 minutes or until they are 3/4 of the way done. in a separate pot, combine melted margarine and add flour until it is smooth (like you would when making a white sauce) over low heat, then gradually add half and half constantly stirring until smooth and it begins to thicken.
Add the Velveeta cheese (cut into small cubes so it will melt easily) Drain the potatoes and add them to the cream mixture. Stir in the pepper and garlic powder. Cover and cook over low heat for 30 minutes, stir occasionally. Place in individual bowls and top with bacon (I just used real bacon bits, but I bet it would be SO yummy if you did make fresh bacon!! I LOVE bacon by the way) and cheese.