Cook bacon in a fry pan until crisp, remove from pan and chop.

Using 2 tablespoons of the bacon fat, cook the potatoes over medium heat, without turning, for 15 to 20 minutes, or until they are brown on the bottom.

Turn the potatoes with a wide spatula. Add onion and cook for 5 more minutes.

Add sugar, salt and water. Cover and simmer for 15 minutes, or until potatoes are tender.

Remove from heat and pour vinegar over potatoes. Cover and let stand for 15 minutes.

Add chopped bacon and reheat.

From Potatoes in Popular Ways, Us Dept. Of Agriculture