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In a large pot of salted water, boil the potatoes until tender when pierced with a fork, but not soft. Drain potatoes. Cut them in half and then in slices.
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Fry the bacon. When crisp, drain on paper towels. Keep the bacon fat in the pan.
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Add the chopped onion to the pan. Cook until translucent.
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Sprinkle the flour, sugar, and mustard powder over the onions. Stir and cook a few minutes more.
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Add the water and vinegar and cook, stirring for several more minutes until the sauce starts to thicken. Add back the potatoes and stir to coat and lightly reheat.
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Add the salt and pepper to taste. To serve, garnish with the minced green onion.
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Serve warm!