Fry bacon until crispy. Remove bacon and set aside, reserving bacon fat in the pan.

Melt butter in the same pan with the bacon fat.

Add chopped onions and green pepper to the pan and cook until softened.

In a separate bowl, blend flour, sugar, and salt.

Add Pet milk to the flour mixture and stir until smooth.

Pour the milk mixture into the pan with the onions and peppers.

Cook over low heat, stirring constantly, until the sauce thickens.

Stir in cider vinegar and dry mustard.

Slice cooked, hot potatoes.

Pour the sauce over the sliced potatoes and toss lightly to coat.

Crumble the fried bacon and sprinkle over the potato salad.

Garnish with paprika and serve warm.