Cook bacon in a large stock pot until crispy. Transfer bacon to paper towels to drain. Once cooled, chop and set aside.
Remove most of the bacon grease, leaving about 1 tablespoon in the pot. Add ground beef and cook until browned. Season with salt and pepper to taste. Drain grease and transfer beef to a separate bowl.
Add 1 tablespoon butter to the same pot. Once melted, stir in onion, carrots, and celery. Season with dried basil, salt, and pepper. Cook until vegetables are tender and carrots are softened.
Add the remaining 2 tablespoons butter and let melt completely. Sprinkle flour over the vegetables and stir well to coat evenly. Cook for a few minutes to lightly brown the flour and remove the raw flour taste.
Add halved baby potatoes and stir to combine. Pour in chicken broth and bring to a light boil, stirring occasionally.
Once potatoes are fork-tender, return the cooked ground beef to the pot. Add milk, Velveeta, and cream cheese. Cook over low heat, stirring frequently, until cheeses are completely melted and the chowder is smooth and creamy.
Turn off heat and stir in chopped bacon, reserving a little for garnish if desired.
Additional garnish: shredded cheese, diced green onion, a few drops of hot sauce, or fresh chopped parsley. Enjoy!