Heat a large pot or Dutch oven over medium-low heat. Cook bacon in a large pot over medium-low heat until crisp (8-10 minutes). Remove to a lined plate and crumple or chop when cooled. Drain grease from pot, reserving 2 tablespoon for sautéing onions.
Increase heat to medium and add the onion. Sauté until soft and just starting to caramelize, about 10 minutes.
Add the potatoes, carrots, water and seasonings. Cover and bring to a simmer, stirring occasionally.
Cook for 30-40 minutes until potatoes and carrots are tender.
Using a potato masher, mash about half of the soup (in the pot) so that some remains chunky, or to your desired consistency. If the soup is too thick, add a bit more water.
Stir in milk if using.
Serve warm with desired toppings.
Notes
LeftoversStore leftovers in an airtight container in the refrigerator up to 4 days or freeze up to 3 months. Thaw in the refrigerator and reheat in the microwave prior to serving.*Nutritional info calculated without milk or toppings.