Coarsely chop bacon and fry with onion till bacon crisp and onion tender. Drain.
Meanwhile open cans, rinse and drain potatoes. Carefully stir together all remaining ingredients, except shredded cheese. Fold in well drained potatoes. If you don't have a big enough bowl, you can mix it together in 2 batches.
Layer 1/2 the potatoes mixture in a 13x9 baking dish. Sprinkle with cheddar cheese. Repeat layers. Cover and refrigerate no less than 8 hours, 24 is best.
Bake in preheated 350 degrees F oven 1 hr to 1 hr 15 minutes till bubbly, stirring once. I also add another layer of shredded cheese after stirring.