Preheat oven to 350°F (175°C). Lightly spray a 9x13-inch baking dish with nonstick spray.
In a large skillet, cook bacon over medium-low heat until crisp. Drain on paper towels and crumble.
Drain all but 2 tablespoons of bacon grease from the skillet. Return skillet to medium heat and add onion. Cook for about 5 minutes until translucent.
Add mushrooms and cook another 5 minutes, until golden brown. Stir in garlic and cook for 1 minute.
Stir in mushroom soup (undiluted) and return crumbled bacon. Mix well.
Add milk and cheese, stirring until the cheese is melted. Season with salt and pepper.
Fold in the green beans until evenly coated.
Pour mixture into prepared baking dish. Top with French fried onions.
Bake uncovered for 30 minutes, until hot and bubbly.