Soup: Chunky Potato

Ingredients:
3 medium red potatoes, peeled and cut into 1-inch cubes
2 cups water
1 small onion, peeled and finely chopped
3 tablespoons butter
3 tablespoons all-purpose flour
Crushed red pepper flakes
Ground black pepper
3 cups milk
1/2 teaspoon sugar
1 cup shredded Cheddar cheese
1/2 to 1 cup shredded bacon

Instructions:
1. Bring water to a boil in large saucepan. Add potatoes and cook until tender. Drain, reserving liquid. Set aside potatoes. Measure 1 cup cooking liquid, adding water if necessary, set aside.
2. Melt butter in saucepan over medium heat. Add onion to saucepan; cook, stirring frequently, until onion is translucent and tender, but not brown.
3. Add flour to saucepan; season with pepper flakes and pepper to taster. Cook 3 to 4 minutes.
4. Gradually add potatoes, reserved liquid, milk and sugar to onion mixture in saucepan. Stir well.
5. Add cheese and bacon. Simmer over low heat 30 minutes, stirring frequently.