| • | Cook the bacon in a large saucepan, over moderate heat until crisp. Remove the bacon with a slotted spoon and drain on paper towels.
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| • | Pour off all but 2 tablespoons of the bacon fat. Reduce the heat to moderately low.
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| • | Add onion and cook, stirring occasionally, until translucent, or for about 5 minutes. Stir in potatoes, water, and salt and bring to a boil.
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| • | Reduce the heat and simmer covered, stirring occasionally, until the potatoes are tender, i.e. for about 15 to 20 minutes.
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| • | Remove half the soup from the pan and puree it in a food processor.
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| • | Return the puree to the pan. Over low heat, add the cheese and stir until melted.
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| • | Remove the pan from the heat. Taste the soup and add more salt if needed. Serve the soup topped with the bacon and chives. |
