In a large saucepan, cook bacon over medium heat until crisp. Remove to paper towels with a slotted spoon; drain, reserving 2 tablespoons drippings.
In the drippings, saute the celery, orange pepper and onion until crisp-tender. Add garlic; cook 1 minute longer. Stir in flour until blended; gradually add broth and milk. Bring to a boil; cook and stir for 1 minute or until thickened.
Add the potatoes, seafood seasoning and salt; return to a boil. Reduce heat; cover and simmer for 10-15 minutes or until potatoes are tender.
Add shrimp and scallops; cook and stir for 3-4 minutes or until shrimp turn pink and scallops are opaque. Stir in cheese until melted. Garnish each serving with bacon. Yield: 6 servings.