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Cook potatoes in the skins and set aside.
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Fry bacon until crisp; remove from pan and place on paper towel to drain.
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Cook and stir onions in bacon drippings until golden brown.
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Blend in flour, sugar, salt, celery salt and pepper.
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Cook over low heat until mixture is bubbly.
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Remove from heat.
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Stir in water and vinegar.
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Heat to boiling; stirring constantly.
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Boil and stir 1 minute.
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Crumble bacon.
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Slice potatoes.
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Carefully stir bacon and potatoes into the hot mixture.
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Heat through, stirring lightly to coat potato slices.