German Deli German Potato Salad

...here is a recipe my great aunt brought over from Germany back in about 1920. She and her husband had a small deli/grocery store and sold this in the store.

Red potatoes to equal 6 cups when sliced
1/2 lb. bacon, diced
1 bunch green onion, sliced
2 Tbsp. flour
1 1/2 Tbsp. sugar
2 tsp. salt
1/2 tsp. pepper
3/4 cup water
1/3 cup vinegar
1/4 cup parsley, chopped

Cook red potatoes in their jackets until just tender.* Peel and slice while still warm. Cook bacon in skillet until done. Remove bacon, reserving the bacon drippings. Return 1/4 cup drippings to skillet. Saute onion in the drippings. Blend in flour, sugar, salt and pepper. Add water and vinegar. Cook until thickened. Add bacon pieces. Pour over potaotes while still warm. Blend in parsley and toss well. Let stand covered a short while to let flavors blend before serving.

*Some believe that it is important to cook the potatoes in their jackets however its quicker and easier to peel first and I don't find it makes a difference.