Best Dutch Oven Potatoes

This were the best potatoes!!! We loved them!!!

6 slice of thick-cut bacon
1 onion, diced
12 potatoes, peeled and sliced in 1/4- in thick rounds (we didn't peel ours)
1 can (4 oz.) diced green chiles
1/2 c. water
salt and pepper, to taste
2 c. grated cheddar cheese

Cook bacon in preheated Dutch oven, over 8-10 coals, remove from heat and crumble. Add onion to the bacon grease and cook until translucent. Put bacon back in the oven and add the potatoes, chiles, and water; season with the salt and pepper.

Cover and bake, using 9-10 coals on bottom 18 on top for 25 mins. Remove lid and turn potatoes over, do not stir. Add more water if needed. Cook 20-25 mins. more. Remove from heat and take coals from lid. Put cheese on potatoes and replace lid for 5 mins. to melt cheese.