Dice unpeeled red potatoes into 1/2 inch cubes. Place in pan cover with water and boil 10-15 minutes. Until about 3/4 cooked.
In a dutch oven, melt butter and flour mixing until smooth.
Place over low heat and gradually add half-and-half, stirring constantly. Continue to cook until liquid begins to thicken.
Add melted cheese and stir.
Drain potatoes and add to cheese mixture. Stir in pepper, garlic powder and hot pepper sauce. Cook over low heat for 30 minutes. Watch closely and stir.
Place in a bowl and garnish with bacon and cheese.
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