Place the stainless steel inner pot inside the Instant Pot®. Add the pre-soaked and rinsed beans. Close and lock the Instant Pot® lid. Make sure the steam release handle is turned to Sealing. Press Pressure Cook and set time to 40 Minutes.
Carefully take the lid off the Instant Pot and remove the beans.
Place the stainless steel inner pot inside the Instant Pot®. Press Saute and set time to 10 Minutes. Place the pieces of bacon in the bowl. Once fried, remove and add the onion and garlic until browned.
Change to the Bean/Chili setting and set time to 10 Minutes. Add the water, cooked beans, and spices. Halfway through the time, remove two ladles of the beans, beat or blend, and add to the bowl along with the bacon.
Serve the beans with rice and your favorite side dish.