German Potato Salad

INGREDIENTS
- 5 pounds red potatoes, washed
- 1 medium onion, thinly sliced
- Salt and pepper, to taste
For Sauce:
- 1/2 pound bacon, diced
- 2 cups water, plus 1/2 cup
- 3/4 cup vinegar
- 1 cup granulated sugar
- 3 tablespoons cornstarch
INSTRUCTIONS
- Add potatoes to a large saucepan or stockpot; cover with cold water. Cook over medium-high heat until potatoes are tender. Drain and cool completely.
- Once potatoes are cool, peel and thinly slice.
- In a large bowl, layer potatoes and thinly sliced onion. Sprinkle with salt and pepper. Repeat layers until potatoes are used.
- For the sauce, cook the bacon in a large skillet over medium heat, until crisp.
- Add 2 cups of water and cook 2 to 3 minutes.
- Add vinegar and sugar. Reduce heat to low and cook another 5 minutes. Adjust seasoning as needed, adding more sugar if necessary, to reach desired sweetness.
- In a separate bowl, combine cornstarch and the 1/2 cup of water, stirring until cornstarch dissolves. Add slurry to the bacon mixture and cook until thick and bubbly.
- Pour bacon mixture over potatoes. Stir gently to combine.
- Serve warm.