Drain peas, reserving 1/3 cup liquid. Place peas and liquid in a blender or food processor; cover and puree until smooth. Set aside. In a large saucepan, saute onion in butter until tender. Stir in the flour, sugar, salt, pepper and sage until blended. Gradually add water; bring to a boil. Cook and stir for 2 minutes or until thickened. Stir in milk and pureed peas; heat through. Garnish with bacon.