Hot German Potato Salad

Step 1

In 3-quart saucepan, place potatoes; add enough water just to cover potatoes. Heat to boiling. Reduce heat to low. Cover and cook 30 to 35 minutes or until potatoes are tender; drain. Let stand until cool enough to handle. Cut potatoes into 3/4-inch dice.

Step 2

Meanwhile, in 10-inch skillet, cook bacon over medium heat 7 to 8 minutes, stirring occasionally, until crisp. Remove bacon from skillet with slotted spoon; drain on paper towels.

Step 3

Cook onion in bacon fat in skillet over medium heat 3 to 5 minutes, stirring occasionally, until tender. Stir in sugar, flour, salt, celery seed and pepper; cook 1 minute, stirring constantly.

Step 4

Stir water and vinegar into onion mixture. Heat to boiling over high heat, stirring constantly. Boil and stir 2 to 3 minutes or until thickened.

Step 5

Reduce heat to medium. Stir in potatoes and cook, stirring gently to coat potatoes, until hot and bubbling. Top with bacon. Serve warm.