Boil potatoes in jackets. Cool. Peel and slice.
In electric fry pan or fry pan on stovetop, brown diced bacon and grated onion. When bacon is crispy, stir in flour. Stir well. Gradually add sugar, vinegar and water. Stir until thickened.
Fold in precooked, peeled sliced potatoes. Add salt and pepper to taste.
Simmer until heated thoroughly. Keep covered until ready to serve.
HINT: I like to make this ahead and keep it warm in a crock-pot if I am going to a get together
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