In a saucepan cook bacon until crisp; remove, crumble then set aside.
To the drippings in the saucepan saute onion and garlic until tender (about 3 minutes).
Add water, potatoes and bouillon granules; cover and simmer until potatoes are tender.
In a small bowl combine/whisk flour with 1/4 cup milk until smooth; add flour mixture, half and half, corn and remaining milk to soup; bring to a light boil cook and stir for 2-3 mins, or until thickened.
Reduce heat add cheese and bacon cook and stir until cheese is melted.