Preheat oven to 350 degrees F (175 degrees C). Grease a 9x13 inch baking dish.
In a medium saucepan, melt butter over medium heat. Stir in flour, salt and pepper until smooth. Gradually stir in milk. Bring to a boil, stirring constantly. Boil and stir for 2 minutes, or until thickened.
Remove from heat and stir in cheese and bacon until cheese is melted. Arrange half of the potato slices in the bottom of the prepared baking dish. Pour half of the cheese mixture over the potatoes. Layer with remaining potatoes and pour remaining cheese mixture over all.
Bake for 45 minutes in the preheated oven, or until potatoes are tender.
Interesting Facts
Scalloped potatoes are a favorite side dish of many cultures, not just American.
Cheese is an excellent source of calcium. Adding cheese to recipes like scalloped potatoes can help you get your daily recommended intake.
Bacon adds a rich and smoky flavor to recipes like this one. You can use pre-cooked bacon or cook it yourself.