
In a Dutch oven, cook the bacon over medium heat until crisp. Using a slotted spoon, remove the bacon strips to paper towels to drain.
In the bacon drippings, saute the chopped onion and diced carrots until tender.
Stir the flour into the bacon drippings until blended. Gradually add milk and water. Bring to a boil, cooking and stirring for two minutes or until thickened.
Add the potatoes, corn, bouillon and pepper. Reduce the heat, and simmer, uncovered, for 20 minutes or until the potatoes are tender.
Add the cheese and cubed ham, and heat until the cheese is melted. Before serving, stir in the bacon bits. If desired, garnish with parsley and additional bacon.