This delicious German potato salad is the perfect side dish for any occasion. It has a tangy and creamy dressing infused with bacon, onions, and vinegar, which adds a tasty kick to the soft and tender potatoes.
Prepare the Potatoes - Cut the potatoes in half lengthwise if larger than 2 inches in size.
Boil the Potatoes - Add potatoes to a large saucepan. Add enough cold water to cover them by 1 inch. Bring the water to a boil over high heat. Once it starts to bubble, add 1 tablespoon salt and stir to dissolve.Reduce to a simmer over medium heat, adjusting as needed. Stir occasionally and cook until the potatoes are fork-tender but not falling apart, about 13 to 15 minutes. Meanwhile, cook the bacon and dressing.
Cook the Bacon - Add the bacon pieces to a large skillet and turn the heat to medium. Saute until crispy, about 6 to 8 minutes. Transfer bacon to a paper towel-lined plate to drain excess grease. Reserve ¼ cup of the grease in the pan.
Make the Dressing - Add the diced onions to the pan with the bacon grease. Cook over medium-low heat until translucent, about 3 to 4 minutes. Add the beef broth and vinegar to the pan, and bring to a simmer over medium heat. Reduce the mixture to 1 cup, cooking for about 2 to 3 minutes. Turn off the heat and whisk in the olive oil, mustard, sugar, 1 teaspoon salt, and pepper.
Cut the Potatoes - Drain the potatoes and cut them into ½-inch thick rounds, semi-circles, or dice. Transfer to a large bowl.
Toss the Salad - Pour the dressing over the sliced potatoes. Add half of the cooked bacon and 1 tablespoon of parsley. Toss to combine. Allow to marinate for 15 minutes before serving. It will still be warm. Refrigerate if a cold salad is preferred.
To Serve - Gently mix, then garnish the potato salad with the remaining bacon and some parsley.