In a 10 or 12 inch skillet, cook bacon till crisp. Leave drippings in skillet; drain bacon and crumble. Add the onion and pepper to the drained potatoes, pat into skillet. Cook over low heat till underside is crisp and brown.
Blend eggs, half and half, 1/2 teaspoon salt, dash of pepper, and a pinch of sugar; pour over potatoes. Top with cheese and bacon. Cover; cook over low heat about 10 minutes or till egg is fluffy and completely cooked. Loosen omelet. Serve in wedges.