Cheesy Potato Soup with Bacon

My sweet husband's birthday is Jan 5th and he always asks for the same thing..potato soup and a bologna sandwich. This year I decided to try and "jazz up" the potato soup a bit. It turned out to be delicious! I thought I'd share the recipe here with you.
2 cups water
2 cups diced potatoes
1/2 cup carrots, shredded
salt, pepper, garlic powder, onion powder..to taste
3 T chicken boullion or you can use 1 C chicken stock

Cook together until potatoes are tender

In sauce pan prepare a white sauce:
1/4 C butter
1/2 C flour
2 C milk
mix butter and flour together over medium heat until smooth, add milk and whisk until thickened. Then add 1 C Velveeta Cheese, shredded and stir until cheese is melted.

Slowly add to soup, stirring until it begins to thicken. Add 1 cup of crumbled cooked bacon (or you can use Hormel real bacon bits). Simmer until soup is desired thickness.
I think it was the best potato soup I've made.