This delicious vinegar based German Potato Salad recipe is loaded with tender potatoes, crisp bacon, sautéed onions, and tons of flavor. Serve cold, warm, or hot - it makes an excellent side dish alongside sausages.
Cook potatoes: Place the potatoes into a pot, and fill with enough water to cover. Bring to a boil, and cook for about 10 minutes, or until easily pierced with a fork. Drain, and set aside to cool.
Cook bacon: Place the bacon in a heavy bottom pan over medium-high heat, reducing the heat as the bacon cooks to avoid burning. Remove the cooked bacon from the pan and set it aside. Discard all but about 1/4 cup of the bacon grease.
Cook onion: Add onion to the remaining 1/4 cup of bacon grease, and cook over medium heat until browned.
Finish warm dressing: Add the vinegar, water, sugar, mustard, salt, celery seed, and pepper to the pan. Bring to a boil, then remove from heat and set aside.
Finish potato salad: Cut cooled potatoes into small pieces with the skin on and add to a large serving bowl. Pour vinegar mixture over the potatoes, then toss to coat. Top with crumbled bacon as well as parsley and chives. Serve hot, warm (preferred), or cold.