Preheat the oven to 350 degrees.
Place unwrapped, frozen spinach in a medium, microwave-safe bowl.
Add 2 tablespoons of water and cover.
Then, microwave on high for 2 minutes and 30 seconds.
Remove and break up with a fork.
Cover and return to the microwave for another 30 seconds.
Next, drain in a colander, pressing with a towel to remove as much liquid as possible.
Meanwhile, heat a medium skillet over medium heat.
Add the bacon.
Continue to cook 6-8 minutes or until golden and crispy.
Reserve 2 tablespoons of bacon fat and drain the remaining bacon on a paper towel lined plate.
In a large bowl, mix together the cream cheese, mayonnaise, Dale’s and milk.
Add the drained spinach, bacon pieces, reserved bacon fat, pimentos, water chestnuts and 1 ½ cups grated cheese.
Mix well to combine.
Place in a 1 quart baking dish and top with remaining cheese.
Cover and bake for 20 minutes.
Remove cover and finish baking until lightly browned on top, another 10 minutes or until bubbly.
Finally, serve with pita chips, crackers or chopped veggies.
Note: If you’d like to make this dip spicy, sub pepper jack cheese for the Monterey Jack cheese and finish with a few dashes of hot sauce.