Baked Potato Soup

5 large baking potatoes, baked
1/4 C. butter or margarine
1 medium onion, finely chopped
1/3 C. all-purpose flour
4 C. half and half
3 C. milk
1 tsp. salt, or to taste
1/8 tsp. pepper
2 C. shredded sharp Cheddar cheese
8 slices bacon, cooked and crumbled

Peel potatoes and coarsely mash with a fork.
Melt butter in a Dutch oven over medium heat; add onion, and saute until tender. Add flour, stirring until smooth.
Stir in potatoes, half and half, and next 3 ingredients; cook over low heat until thoroughly heated. Top each serving with cheese and bacon.