This is the best potato soup I have ever had! The recipe is from The Machine Shed, a great restaurant in Iowa.

I took this last year to the In-law's Christmas family gathering and everyone loved it!
Baked Potato Soup (serves 10-12)
2 1/2 lbs. baby red potatoes (quartered)
3 stalks celery (diced)
1 quart water
1 quart milk
1 tsp. black pepper
3/4 C. flour
1/4 C. chopped parsley
1/2 lb. raw bacon (diced)
1 jumbo yellow onion (diced)
1/4 C. Chicken base
1 tsp. salt
1 1/2 sticks margerine
1 C. whipping cream
BOIL potatoes in water for 10 minutes. DRAIN and set aside.
In large heavy pot, SAUTE bacon, onions, and celery over medium-high heat until celery is tender. DRAIN bacon grease and return bacon, onions, and celery to pot.
ADD milk, water, chicken base, salt and pepper. HEAT over medium-high heat until very hot. DO NOT BOIL.
In large heavey sauce pan, MELT margarine and ADD flour (called a roux). Mix well and allow to bubble, stirring for 1 minute.
While constantly stirring soup, ADD the flour and margarine mixture (roux) slowly.
CONTINUE stirring soup until thick and creamy.
STIR in parsley, potatoes and cream.
Garnish with shredded Colby cheese, fried bacon bits, chopped green onions, or all three.
Serve while hot.
ENJOY!