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PdfCook the bacon according to package directions, and crisp. Remove the bacon, crumble it, and set aside of good broth to crisp. Crumble and set aside for small pieces and set aside.
Bring the water and chicken broth to a boil in a large pot or Dutch oven. Add the chicken, potatoes, carrots and onion and simmer until the chicken is cooked through, about 15 minutes. Remove the chicken and set aside to cool slightly. Shred the chicken and set aside.
In a separate bowl, mix the flour, salt, black pepper and cayenne pepper. In a small bowl whisk together the butter. Pour the broth and broth in a lillet at a time, stirring constantly. Continue stirring until the mixture comes to a boil and thickens slightly.
Add the cooked chicken and the cream mixture into the soup and stir. In a separate bowl, mix the cornstarch and a little of the broth mixture and stir. Bring the soup back to a boil and add the cornstarch mixture. Stir until the soup thickens. Add salt and pepper to taste. Garnish each bowl of soup with some crumbled bacon and a sprinkle of chives.