Cut the bacon into 1-inch strips.

Fry bacon over medium heat until almost crisp.

While bacon is frying, boil potatoes (skins on) until cooked, but not soft.

In a separate pan, mix water, vinegar, and sugar together.

Heat the water, vinegar, and sugar mixture on low until sugar is dissolved.

Add sliced onions to the bacon just before it is done.

Add salt and flour to the undrained bacon/onion mixture.

Quickly add the prepared water/vinegar/sugar mixture to the bacon and stir into a thick sauce.

Turn off the frying pan.

Peel and slice the cooked potatoes.

Place the sliced potatoes into a large casserole dish.

Add the sauce to the potatoes and stir to coat evenly.

Bake in the oven until potatoes are soft.