Saute the chopped bacon in a large Dutch oven until it's crisp; remove from pan with slotted spoon and set aside. Remove all but about 2 tablespoons of the bacon fat. Add the onion, sprinkle with a little salt and pepper and saute over medium heat until translucent, maybe 5 minutes or so.
Add the hashed browns to the pot along with the milk, water and dill weed. Add a little salt & pepper. Bring to a boil, then turn heat down and simmer for 30 minutes, stirring occasionally.
After the 30 minutes are up, stir in the reserved bacon and taste for seasoning before serving.
Note: I've played around with this recipe. **I've also added 1 grated zucchini; I add it to cook for a few seconds after the onions are done. **I don't normally have frozen hashed browns on hand so often I'll use several peeled white Idaho potatoes; I slice them into very thin strips (the size of small french fries) and then I'll cut them into sticks about 1/2" long. **You could also omit the dill weed if you don't care for it. **The one substitution that didn't work was when I tried using turkey bacon. It just didn't taste right.