In a large Dutch oven, cook the bacon over medium heat until crisp. Remove the bacon and place it on a paper towel-lined plate to drain. Once cooled, chop or crumble the bacon into bite-sized pieces.

Pour off all but about 2 tablespoons of the bacon grease from the pot. Add the chopped celery and onion to the pot and sauté until tender and the onions are translucent, approximately 5 minutes. ​

Add the cubed potatoes to the pot, stirring to combine with the celery and onions. Pour in the water and add the bay leaves. Season with salt and freshly ground black pepper to taste.

Bring the mixture to a boil over medium-high heat, then reduce the heat and simmer until the potatoes are tender, about 15-20 minutes.

Remove and discard the bay leaves. Using a potato masher, gently mash some of the potatoes in the pot to achieve a chunky consistency. Be sure to leave some potato pieces whole for texture. ​

Grate a small amount of fresh nutmeg into the soup and add a splash of Worcestershire sauce. Stir to combine.

If the soup is too thick, add milk gradually until the desired consistency is reached. Taste and adjust seasoning with additional salt and pepper if necessary. ​

Ladle the soup into bowls and garnish with the crumbled bacon, grated cheddar cheese, and chopped chives or green onions. Serve hot. ​