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1. Cut 2 of the potatoes into cubes and boil them in water. While they're boiling, make the bacon, pesto, and potato crisps.
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2. To make the pesto, mix the basil, olive oil, pine nuts, and parmesan cheese in a food processor (or you can do it with a knife, but that takes longer and you get a nicer texture from a food processor). All of the ingredients may not fit all at once so it's ok to do it in batches and mix them after they've been chopped.
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3. Slice the last potato into thin slices and add some salt and pepper.
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4. When the potatoes are soft enough to easily stick a fork into them, drain the water then return the pot to the stove and mash the potatoes (you can make the soup very smooth and more soup-like, or leave the potatoes in large chunks, or anything in between). Add the soup, milk, and pesto.
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5. At this point the bacon should be done, so take it out of the pan to cool and add the potato slices.
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6. The potatoes are done when they're crispy and brown. While they're cooking, crumble the cooked bacon and add half to the soup.
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7. When everything is done, sprinkle your soup with potato crisps and bacon!
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This soup tastes best after it has had some time to sit and mix all the flavors together; you can really taste the pesto and bacon the next day. I also had some kind of basil vinaigrette dressing that I drizzled on and that tasted awesome; wish I knew how to make it.