Step 1

Cook and stir bacon in large skillet on medium heat until crisp. Use slotted spoon to remove bacon from skillet; drain on paper towels. Discard all but 2 Tbsp. drippings from skillet.

Step 2

Add onions to drippings in skillet; cook and stir 5 min. or until crisp-tender. Blend in flour. Stir in water, vinegar, pepper and bacon. Bring to boil; cook on medium heat 5 min. or until thickened, stirring occasionally.

Step 3

Pour over potatoes in large bowl; mix lightly. Serve warm.