Put bacon in a medium-sized saucepan and heat over moderate heat until fat begins to render out. Add sliced onion and cook, stirring frequently with a wooden spoon, until onion is golden brown and the bacon pieces are crisp.

Add diced potatoes to bacon and onion mixture. Pour in 3/4 cup water and bring mixture to a boil over high heat. Reduce heat, cover saucepan and simmer potato mixture for about 10 minutes or until potatoes are tender but not mushy.

Add cream-style corn, undrained, to potato mixture. Stir in milk, butter, salt, sugar and pepper. Cover pan and simmer 5 minutes or until chowder is very hot. Keep warm while you prepare biscuits. When ready to serve, sprinkle chowder with parsley.

Make Cheese Biscuits: Preheat oven to 450 degrees. Sift flour with baking powder and salt. Toss with cheese and cut in shortening with pastry blender or 2 knives until mixture resembles coarse cornmeal. Make a well in center; pour in 2/3 cup of the milk, all at once.

Stir dough quickly with fork; if dry, add a little more milk to form a dough ball. Knead 10 times; on a floured surface, roll out to 3/4 inch thickness and cut into 2 1/2 inch biscuits. Place on ungreased baking sheet and bake for 12 to 15 minutes. Makes soup and biscuits for 8 servings.