In a skillet, fry the bacon pieces and chopped onion together until the bacon is cooked and the onion is starting to brown. Do not drain bacon drippings.
Add the cabbage and stir fry for several minutes, until the cabbage is coated with the drippings. Add 1/2 Cup of water and cover for a few minutes at medium heat. Uncover and stir frequently, replacing the cover each time. Reduce heat to med-low, cover and let cook about 20 to 30 more minutes, stirring occasionally until the cabbage is tender.
Season with salt and pepper to your taste. Serve hot.