Spray a 13"x9" baking dish with cooking spray. Set aside.
Cook lasagna noodles according to package directions. Drain and set aside.
Peel and chop the potatoes into chunks, place them into a large stock pot and cover with water. Bring to a boil.
When potatoes are fork tender, drain then and place into a large mixing bowl. Add the butter, milk, cream cheese, garlic powder, onion powder, salt and pepper to the potatoes and whip smooth using a hand mixer. Set aside.
Place the chopped bacon into a frying pan and cook until nice and crispy.
Discard all but about 2 tablespoons of the bacon grease from the pan. Add the sliced onion to the remaining bacon grease in the pan and cook down the onions until they are soft and caramelized, about 8 minutes.
Add the bacon and caramelized onions to the potato mixture and mix well.
Stir in 1 cup of the cheddar cheese. Now you're ready to layer.
Place three noodles in a baking dish and cover with a third of the potato mixture. Repeat layers twice. Top with the remaining cup of cheddar cheese.
Cover baking dish with foil and bake 30-35 minutes or until heated through. Uncover the dish for the last five minutes.
Remove from oven and let stand about 10 minutes before serving.