German Potato Salad

Here is the last of the potato salads that I'd like to post from The Dean & DeLuca Cookbook, by David Rosengarten with Joel Dean and Giorgio DeLuca. I haven't made it yet, but I have it slated for next weekend. I'm in the swing of BBQ season now, firing up the grill at least once a week now!

--4 lbs Red Potatoes, skins on
--1/2 lb good Bacon, cut into 1/4-inch dice
--2 medium Onions, finely minced
--1/2 cup White Wine Vinegar plus any more to taste
--1 1/2 tsp Sugar
--2 tsp Cornstarch, mixed with a few teaspoons of Water to make a smooth paste
--3/4 cup Water
--Salt and Pepper to taste
--1 Egg, beaten
--Fresh Chives, chopped

Fill a large pot 2/3 full with salted water and bring to a boil. Add the potatoes and cook until just past crunchy (7-8 minutes OR longer if you want softer spuds). Drain and set aside. In a heavy skillet, cook the onion and bacon until the onions are soft but not brown (about 6 minutes). Add the vinegar and sugar and bring to a boil over high heat. Add the cornstarch paste and mix well, scraping the bottom of the pan with a wooden spoon. Add the water and return to a boil. Turn the heat to low and simmer for about 10 minutes, until the mixture has a velvety texture. When the potatoes are cool enough to handle, peel them and cut them into 1/4-inch slices. Place them in a mixing bowl and salt and pepper them to taste. Pour the hot bacon and onion mixture over the top and add the beaten egg. Gently mix all the ingredients, taking care to not break the potato slices). Add more vinegar to taste, garnish with the chives and serve warm.