Combine ground beef, diced bacon, diced onion, salt, and pepper in a bowl.

Shape the mixture into four oval patties.

Brown the patties in a skillet over medium heat and remove from the skillet.

Keep the browned patties warm while preparing the gravy.

Drain all but 1 tablespoon of drippings from the skillet.

Sauté chopped green peppers and chopped onion in the drippings until tender.

Add diced tomatoes (undrained), bay leaves, sugar, celery salt, salt, and pepper to the skillet.

Combine water and flour until smooth.

Add the water-flour mixture to the tomato mixture, stirring constantly.

Bring the gravy to a boil, then cook and stir for 2 minutes.

Return the browned beef patties to the gravy in the skillet.

Reduce heat, cover the skillet, and simmer for 30 minutes.

Uncover the skillet and simmer for an additional 10 minutes.

Remove the bay leaves before serving.