Place potatoes in a large saucepan and cover with water. Bring to a boil. Reduce heat; cover and cook for 15-20 minutes or until tender. Drain. Peel and slice into a large bowl; set aside.
In a large skillet, cook bacon until crisp. Using a slotted spoon, remove bacon to paper towels; drain, reserving 2 tablespoons drippings.
Saute onion in drippings until tender. Stir in the next six ingredients. Gradually stir in water and vinegar; bring to a boil, stirring constantly. Cook and stir 2 minutes more or until thickened. Pour over potatoes; toss to coat. Crumble bacon and gently stir into potatoes. Sprinkle with parsley. Yield: 12-14 servings.