Chicken -n- Biscuit Casserole

8 slices bacon, cooked crisp and crumbled
2 1/2 cups cubed, cooked chicken
1 package (10-ounce) frozen mixed vegetables
1 1/2 cups shredded cheddar cheese, divided
1 can cream of mushroom soup (full strength)
3/4 cup plus 2/3 cup milk
1 1/2 cups biscuit mix
1 can French fried onions, divided

Preheat oven to 400F.

In greased 8x12-inch pan combine bacon, chicken, vegetables, and one cup of the cheese.

Blend soup and 3/4 cup milk; pour over casserole.

Bake, covered, 15 minutes.

While baking prepare biscuit dough: combine biscuit mix, 2/3 cup milk and 1/2 can of French fried onions; mix thoroughly. Drop by spoonfuls to form 6 biscuits around the edge of casserole.

Bake, uncovered, 15 to 20 minutes, or until biscuits are golden brown.

Top with remaining French fried onions and cheese and bake another 2 to 3 minutes, until onions are toasted.