Cook the bacon over medium heat until done. Transfer to paper towels to absorb extra grease, and set aside.
Put the skillet back on the stove over medium heat, and saute the onion in bacon grease until lightly browned - about 7-10 minutes. Remove from heat.
Stir in garlic, cream cheese, and cottage cheese until combined.
Stir in hot sauce, water, blue cheese, bacon, and walnuts. Add extra liquid if it's too thick to stir. (If you want to put this in a 1-quart baking dish you can)
Transfer to the oven, and bake for 25-30 minutes until edges are bubbly.
Serve with whole wheat crackers and/or fruit slices.
Notes
*After cooking the bacon, you should have about 1 tablespoon of bacon grease. If there is a lot more in the pan, remove it with paper towels or pour off extra.*I highly recommend tasting the dip before you bake it to test the flavors. It's easier to make adjustments at this point.*Makes 3 cups of dip.*Great served with crackers, chips, or apple or pear slices.