Preheat the oven to 350.
Spray a 9 x 9 baking dish with cooking spray and set aside.
Melt the butter in a large skillet over medium heat.
Whisk in the flour and cook, stirring occasionally, until golden brown.
Slowly add the milk, followed by the chicken broth, while whisking constantly to prevent lumps.
Cook until thickened and starting to bubble.
Remove from heat and stir in the half and half, salt, pepper, and 1 cup of cheddar cheese.
Layer 1/3 of the potatoes in the bottom of the prepared dish.
Pour 1/3 of the sauce over the top and spread to cover.
Sprinkle 1/4 cup cheese and 1/3 of the bacon pieces over the top.
Repeat twice with remaining potatoes, sauce, cheese, and bacon.
Cover with foil and bake for 50 minutes,
Remove cover and bake 20-30 minutes, or until golden brown and bubbling.
Let stand 15-20 minutes before serving.