Cheeseburger Soup

6 medium potatoes, peeled and cubed
1 small carrot, grated
1 small onion, chopped
1/2 cup chopped green pepper
2 Tbls. chopped & seeded jalapeno pepper
3 cups water
2 Tbls. plus 2 tsp. beef bouillon granules
2 garlic cloves, minced
1/8 tsp. pepper
2 lbs. ground beef
1/2 lb. sliced fresh mushrooms
2 Tbls. butter
5 cups milk (divided)
6 Tbls. flour
1 pkg. (16 oz.) process cheese, cubed (Velveeta)
Crumbled cooked bacon

In a soup kettle, combine the first 9 ingredients; bring to a boil. Reduce heat; cover and simmer for 15-20 minute3s or until potatoes are tender. Meanwhile, in a large skillet, cook beef and mushrooms in butter over medium heat until meat is no longer pink; drain. Add to soup. Stir in 4 cups milk; heat through. In a small bowl, combine flour and remaining milk until smooth; gradually stir into soup. Bring to a boil and stir for about 2 minutes or until thickened. Reduce heat; stir in cheese until melted. Garnish with bacon. Enjoy!