1. Dice unpeeled potatoes into 1/2 inch cubes. Boil 10 minutes or until 3/4 cooked.
2. In a separate pan, combine melted butter and flour and mix 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 until well mixed.
3. Drain potatoes and add to cream mixture. Stir in pepper, garlic powder, and hot sauce (to taste). Cover and cook over low heat for 30 minutes. To serve place bacon, shredded cheese, chives and parsley on top.