Preheat the oven to 350 degrees. Grease two bread loaf pans.

In a large mixing bowl, add the warm water, salt and sugar. Allow 15 minutes for the yeast to activate and bubble.

Add the flour to yeast mixture. Mix the flour into the liquid. The dough will form and will be not be smooth. This is what you want.

Cover the bowl with a towel and set in a warm spot. Allow the dough to rise for about an hour.

Once the dough has risen, mix the shredded sharp cheddar cheese into the dough. Making smaller balls of dough and mixing the cheese in will help getting the cheese into all portions of the dough.

Repeat with the chopped bacon.

Separate the dough in half and place one half into each greased loaf pan.

Place the pans in a preheated oven and cook for 50-55 minutes. The top will be hard and golden brown.

Serve.