Sautee onions and jalapenos in bacon drippings until very soft. Heat milk and set aside. In sauce pan melt butter add flour and cook for a couple of minutes. Add milk – stirring constantly until smooth and thickened.
Add in the cream cheese. Once the cream cheese is melted take off heat and stir in the cheddar cheese. Correct seasonings. Butter a casserole dish.
Layer potatoes, season with salt and pepper. Add some of the onion/jalapeno mixture. Add some of the cheese sauce, top with shredded cheese and crumbled bacon. Repeat layers.
Bake at 350 for 30 – 45 minutes. Let sit for 5 minutes before serving.
