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Boil the Potatoes: Wash and boil red potatoes in a large pot until fork-tender, about 15-20 minutes. Drain and set aside.
Sauté the Onions: In a large saucepan, melt butter over medium heat. Add diced onions and sauté until translucent, about 3-4 minutes.
Make the Roux: Stir in flour, salt, and pepper. Cook for another minute, stirring constantly.
Add the Milk: Slowly whisk in the milk and evaporated milk. Cook and stir until the mixture thickens, around 5 minutes.
Add the Veggies: Fold in frozen peas and cooked potatoes. Stir gently to coat in the creamy sauce.
Finish with Bacon: Stir in crumbled bacon and heat through for 2-3 more minutes.
Serve Warm: Plate and enjoy as a side with your favorite main dish!