Cook bacon in 3-quart saucepan over medium heat until crisp; drain grease. Add carrots. Continue cooking 2 minutes or until crisp tender. Stir in Simply Potatoes(R) and flour.
Slowly stir in broth and water. Continue cooking, stirring constantly, until mixture comes to a boil and starts to thicken. Reduce heat to medium-low, cook 15 to 20 minutes, stirring occasionally, or until potatoes are tender. Stir in milk. Continue cooking 2 to 3 minutes or until thoroughly heated (do not boil). Season with salt and pepper.