These came from a Kraft food magazine and before I even got the mag home I was at the grocery store buying the ingredients for them. My family loves them. I never measure the bacon bits and cheddar though because my family says there is never enough bacon bits and cheese. You can use reduced fat dressing and shredded cheddar cheese.
Preheat oven to 350 degrees. Scrub potatoes and cut into bite size chunks. Mix together the dressing, bacon bits, and shredded cheddar in a large bowl. Add the potatoes and stir until all are covered with the mixture.
Spray a 11 by 13 baking dish with vegetable spray. Spoon in the potatoes spreading them around to make one layer. Cover with aluminum foil. Bake 40 minutes. Remove foil and bake another 15 or until done and lightly brown.