Combine potatoes with 1/4 cup of the onion. Barely cover with water and simmer till potatoes are soft.

Meanwhile combine chopped bacon with remaining onion in small skillet and cook until onions are golden.

In another pan melt butter and add flour, stirring to a smooth paste. Add milk slowly to make a thick sauce.

Add clams to the potatoes and onion mixture and stir in the sautéed bacon and onions. Then slowly add the thickened white sauce, stirring constantly.

Salt and pepper to taste. Simmer mixture at least 10 minutes, adjusting thickness with more milk if necessary.