Saute Bacon: In a large stock pot, cook bacon over medium-high heat, until just crispy (not overly crispy), about 4-5 minutes. Use a slotted spoon or spatula to remove the bacon and set aside on a plate that’s covered with paper towels to absorb grease. If you want, wipe out some of the grease from the pot (leaving a little behind).
Saute Aromatics: Add the onions to the same pot and cook until softened, about 3-4 minutes. Season lightly with salt and pepper while they cook. Stir in the garlic and saute for 30-60 seconds more.
Combine & Simmer: Stir in the chicken broth (scrape up any brown bits from the bottom of the pan as you do), cooked bacon, potatoes, carrots, 1 teaspoon salt, and 1/2 teaspoon pepper. Cover with a lid partially and simmer until vegetables are tender, about 15-20 minutes. Stir occasionally.
Add Milk & Corn: Stir in the milk and corn and heat until simmering, another 5 minutes or so.
Melt in Floured Cheese: Meanwhile, toss shredded cheese with flour in a bowl. Remove the pot from the heat. Slowly stir in the floured cheese to the soup, stirring constantly in a figure eight pattern until cheese is melted and the soup thickens up.
Serve: Taste and season with more salt and pepper, as desired. (Note: If your soup is too thick, you can add more milk or stock to thin it out and then warm through. Be sure to adjust seasoning accordingly.) Serve warm. Top with minced chives and/or oyster crackers.