Sauté bacon in large saucepan over medium-low heat 4 minutes. Add onion; cook 4 minutes; do not brown.
Add 3 cups corn kernels, potatoes, celery, broth and water. Simmer 25 minutes or until potatoes are tender.
Transfer 3 cups of mixture to food processor or blender. Whirl until pureed. Pour back into saucepan.
Add milk, remaining corn, ham, salt and pepper. Gently heat through.