Line a grilling basket with tin foil. If you don't have a grilling basket, just spread foil out on work surface. Coat foil with nonstick spray to prevent potatoes from sticking. You can peel the potatoes or leave peels on. If you leave the peels on, make sure you scrub them good first. Cut potatoes into bite-size pieces - about 1/2 inch cubes. Place on tin foil and dab the tops with butter, salt, and pepper. Seal foil over top of potatoes.
Place basket upside down on the grill for 15 min. at medium heat. Turn and cook another 15 min.
Remove onto a heatproof surface. Open foil and sprinkle cheese and bacon bits on top. Cover foil back loosely and let sit for 5 minutes allowing cheese to melt. Using a large spoon, scoop potatoes onto plates.