Fry bacon slowly until crispy.

Drain bacon and set aside.

Chop or crumble the bacon.

Chop the onion.

Saute chopped onion in bacon fat until softened.

In a small bowl, blend together flour, sugar, salt, pepper, and celery seed.

Add the flour mixture to the sauteed onions.

Cook the mixture, stirring constantly, until smooth and bubbly.

Add vinegar and water to the mixture.

Stir well and bring to a boil.

Boil for 1 minute, stirring continuously.

Peel and slice the cooked potatoes.

Add sliced potatoes and bacon to the sauce.

Stir gently to combine.

Serve warm.