In a covered saucepan, cook potatoes in boiling, salted water for 25 to 30 minutes or until tender.

Drain the potatoes well.

Peel the potatoes.

Slice the potatoes.

Cook bacon until crispy.

Remove bacon and crumble, reserving the bacon fat.

Sauté chopped onion in the reserved bacon fat until softened.

Stir in flour, sugar, salt, celery seed, and pepper.

Gradually add water and vinegar, stirring constantly to prevent lumps.

Cook until the dressing thickens slightly.

Pour the warm dressing over the sliced potatoes.

Gently mix in the crumbled bacon and sliced hard-cooked eggs.

Serve warm.