In a deep, lidded skillet, fry the bacon over medium heat until the fat renders, but the bacon is not crisp.
Add the onions and sauté for 2 minutes, then add the potatoes. Add freshly ground pepper and salt as needed, depending on the bacon's saltiness. Stir to separate the potato slices and distribute everything evenly in the pan.
Add about 1/4 cup of water to the pan, stir through, and cover with the lid. Reduce the heat to low and let the potatoes soften and cook through—about 20 minutes.
Remove the lid, increase the heat to medium-high, and brown the potatoes for 10 to 15 minutes. Serve immediately.