Meanwhile, cook the sliced bacon in a large skillet over medium heat until browned, about 5-6 minutes stirring occasionally. Transfer the bacon to a plate topped with paper towels to drain.
Add the onion to the bacon grease and cook for about 3-4 minutes or until the onion is transparent but not brown. Stir in 1 cup water, the white vinegar, mustard and sugar and cook for about 5-7 minutes or until the dressing has reduced to about 2 cups.
Add the potatoes back to the pan with the dressing and toss to coat. Add the chopped bacon and parsley. Season with kosher salt and freshly ground black pepper to taste. Serve warm.
*Somewhat frozen bacon makes for the easiest slicing. Simply pop the bacon in the freezer for 10-15 minutes, then slice away.
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