Chicken 'N' Biscuits

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1 (10.75 ounce) can condensed cream of chicken soup, undiluted

2/3 cup milk

3/4 cup milk

8 bacon strips, cooked and crumbled (optional)

1 1/2 cups biscuit/baking mix

2 1/2 cups cubed cooked chicken

1 (16 ounce) package frozen mixed vegetables

1 (2.8 ounce) can French-fried onions

1 1/2 cups shredded Cheddar cheese, divided

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