Cheesy Ham Chowder

10 bacon strips, cooked and diced
1 chopped onion
1 cup diced carrots
3 TBS flour
3 cups milk
1 1/2 cups water
2 1/2 cups cubed potatoes
1 can drained corn
2 tsp chicken bouillon granules or 2 cubes
Pepper to taste
3 cups (12 oz) shredded cheddar cheese
2 cups cubed fully cooked ham

Cook bacon, remove to paper towels to drain. (Cook bacon in a large pot so you don't have to transfer the oil). Saute' onions and carrots in bacon drippings until tender. Stir in flour. Gradually add milk and water. Bring to boil-cook and stir 2 minutes or until thickened. Add potatoes, corn, bouillon, and pepper. Reduce heat and simmer, uncovered for 20 minutes or until potatoes are tender. Add cheese and ham. Heat until cheese is melted. Stir in bacon. Yum-o!