8 medium sized potatoes, peeled
3/4 C. chopped onion
8 slices bacon, cut in one inch pieces
2 T. flour
1 1/2 t. salt
1/4 t. pepper
4 T. sugar
1 C. water
1/2 C. vinegar

Dice potatoes and cook in lightly salted water till tender. Drain and keep warm. While potatoes are cooking, fry bacon untill crisp. Remove bacon and discard all but 3 Tablespoons of drippings. Add onions and cook till tender, about 5 minutes. Mix together dry ingredients. Add to onions and stir to blend. Add water and vinegar. Bring to a boil until thickened. Pour over hot cooked potatoes. Add bacon and toss gently.