Melt half of butter in large skillet. Sauté onions until translucent, remove from pan and set aside.
Add the rest of the butter to the same pan along with squash. Sauté squash until soft. May have to work in batches.
Remove to large bowl and allow to cook slightly.
To bowl of squash, add salt and pepper to taste along with Velveeta cheese shreds, onions, crackers, sour cream. Mix well.
Add in eggs, and mix thoroughly.
Place in 9x13 in buttered baking dish.
Sprinkle shredded cheddar on top.
Lay bacon pieces on top of cheese.
Bake in 375 degree oven for 30 minutes or until bacon is crisp.
* You may also place under the broiler for several additional minutes to get a crispier bacon on top.