Press Saute on your Instant Pot, then add butter and allow it to melt. Add the onion and cook, stirring frequently, until onion has softened and just starting to brown around edges, about 5-6 minutes. Press cancel and add garlic, sautéing for 30 seconds.
Pour in the broth (or water) and scrape brown bits from the bottom of the pot. Add the potatoes, corn, bay leaf, thyme, salt and pepper and stir.
Close and secure the lid, then cook on Manual High for 15 minutes. At the end of the cooking time, quick-release the pressure. Carefully remove the lid. Discard the bay leaf.
Press saute. Mix the cornstarch with the milk until smooth, then stir it into the soup, followed by the cream and honey. Use an immersion blender to pulse the soup a bit to thicken it, leaving most of it chunky. Stir, then allow to simmer for 4-5 minutes. Press cancel. Stir in bacon.
Serve garnished with cheese and parsley and, if desired.