Dice unpeeled red potatoes into 1/2 -inch cubes. Place in a large Dutch oven.
Cover with water and bring to a boil. Let boil for 10 minutes or until cooked
about three-fourths done.
In a separate Dutch oven, combined melted margarine and flour, mixing until
smooth. Place over low heat and gradually add half-and-half, stirring
constantly. Continue to stir until smooth and liquid begins to thicken.
Add melted Velveeta. Stir well. Drain potatoes and add to cream mixture. Stir in
pepper, garlic powder and hot pepper sauce. Cover and cook over low heat for 30
minutes, stirring occasionally.
Place soup into individual serving bowls. Top with crumbled bacon, shredded
Cheddar cheese, chives and parsley. Serves 8.