Classic German Potato Salad

Jim found this recipe in our local newspaper. I didn't think I liked German potato salad, but this was good stuff.

2 lbs. redskin potatoes, cooked, cooled and sliced
1 tbsp. canola oil
3/4 cup chopped onion
3 tbsp. cooked bacon bits
3/4 cup water
1 tbsp. all-purpose flour
1/3 cup cider vinegar
4 tbsp. sugar
1/2 tsp. celery seed
1/2 tsp. dry mustard
3/4 tsp. salt
1/8 tsp. ground white pepper

In a large bowl, place the cooked, sliced potatoes.

In a small nonstick skillet, heat the oil over medium heat. Add the onion and bacon bits and saute until onion softens, about 4-5 minutes. Place onion-bacon mixture on top of potatoes and set aside.

In a small bowl, whisk together the water and flour until dissolved. Add the vinegar, sugar, celery seed, dry mustard, salt and pepper and continue to whisk until combined. Pour the vinegar mixture into a saucepan and cook over medium heat until bubbly; boil and stir for one minute. Pour sauce over potato and onion-bacon mixture and gently stir to coat. Serve warm.