In a large pot, cook the chopped bacon until crispy. Remove and set aside, leaving the bacon grease in the pot.
Add butter to the pot, then sauté the diced onion, red bell pepper, and jalapeño until softened.
Stir in the minced garlic and cook briefly until fragrant.
Add the flour and cook for a minute, stirring constantly.
Mix in salt, pepper, smoked paprika, and ground mustard.
Gradually add the chicken broth while stirring to create a smooth base.
Add the water, milk, heavy cream, diced potatoes, chicken, and corn. Stir well.
Let the soup simmer until the potatoes are tender and the chicken is fully cooked.
Remove the chicken, shred it, and return it to the pot.
Blend a portion of the soup for a thicker texture, then mix it back in.
Stir in the cooked bacon, adjust seasoning as needed, and serve warm.
