Boil the potatoes in a medium pot till fork tender. Drain the potatoes when they have finished cooking and set aside.
While potatoes are cooking cook the bacon in a heavy bottomed soup kettle. Once cooked, add the peppers and onions. Cook till veggies are soft.
Add flour, and stir to coat. Add the broth and the milk, and stir.
Add the potatoes and allow the soup to simmer for about 5 minutes.
Add the pepper jack cheese, and stir. Season with salt and pepper if desired.