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Step 1
Prepare campfire or grill for medium heat. In a large bowl, toss potatoes with onion, bacon, butter, salt and pepper. Place on a large piece of greased heavy-duty foil (about 36x12-in. rectangle). Fold foil around potatoes, sealing tightly.
Step 2
Cook on campfire or in covered grill until potatoes are tender, about 15 minutes per side. Open foil carefully to allow steam to escape; place cheese over potatoes. Cook until cheese is melted, 1-2 minutes. If desired, serve with sour cream.