Cut bacon strips into smaller pieces.
Place an enamled dutch oven over medium heat. Add bacon and cook until crisp. Remove bacon from pan leaving bacon grease.
Rasie heat to med/high and add chopped onions and celery. Cook until sweating.
To onion mixture add cut potatoes, thyme, pepper, garlic, sherry, bay leaves, Worcestershire sauce and clam juice. Cook until potatoes are almost tender.
Measure milk and cream. In a smaller bowl combine flour and a small amount of the measured milk. Whisk until smooth adding more milk if necessary.
Add flour mixture to dutch oven and then stir in rest of cream and milk. Cook until thick and bubbly, making sure the potatoes are tender.
Stir in clam and bacon bits. Cook for 1-2 minutes.