1 pound ground turkey or beef

1 medium onion, chopped
1 medium sweet red pepper, chopped
1 garlic clove, minced
3 tablespoons all-purpose flour
2-1/2 cups 2% milk
1 pound potatoes (about 2 medium), peeled and chopped
1-1/2 cups water
1 tablespoon reduced-sodium beef bouillon granules
12 ounces process cheese (Velveeta), cubed (about 2-1/4 cups)
3 bacon strips, cooked and crumbled