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In large skillet, fry bacon until crisp. Remove and set aside. Drain all but 2-3 T of drippings, cook onion until tender. Stir in flour and blend well. Add vinegar and water, cook and stir until bubblyand slightly thick. Add sugar and stir until it dissolves. Crumble bacon and gently add bacon and potatoes to mixture. Heat through, stirring just to coat potatoes. Serve warm.
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