Heat 8 cups water to boil for noodles. When water boils, add noodles and cook about 1 minute less than package directs. Drain.
Put oil and onion into saucepan. Stir to coat onion with oil. Add water, cover and sweat the onions over medium-low heat until they wilt and become sweet. Stir occasionally. Do not allow onions to brown.
Fry bacon in large deep pot over medium heat until golden. Spoon onto papter towels to drain. Set aside.
Drain the bacon fat from the pot, but do not wash.
Add milk to bacon cooking pot and heat to simmer.
Add cheese spread and whisk until cheese melts and mixture is smooth.
Add mozzarella. Stir in figure 8 pattern (keeps it from balling up on the spoon) until cheese melts and mixture is smooth.