Boil potatoes with their skins on until tender but firm.

Cool potatoes slightly.

Peel the potatoes.

Slice the cooled potatoes into bite-sized pieces.

Dice the bacon into small pieces.

Fry the bacon in a pan until crispy.

Remove the bacon from the pan, reserving the bacon fat.

Measure 1/4 cup of the reserved bacon fat and return it to the pan.

Stir in the sugar, flour, salt, and pepper into the bacon fat.

Gradually add the vinegar and water, stirring constantly to avoid lumps.

Cook the dressing over medium heat until it thickens, about 5 minutes.

In a large bowl, combine the sliced potatoes, crispy bacon, chopped celery, chopped onion, chopped green pepper, sliced hard-boiled eggs, and sliced pimentos.

Pour the warm dressing over the potato mixture.

Mix lightly to coat all ingredients evenly.

Transfer the potato salad to a casserole dish.

Serve warm.