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Cook about ½ to ¾ of a pound of bacon and reserve about 2 tablespoons of bacon fat, remove off of the heat and set aside.
Mean while heat the potato halves in a large pot of room temperature water and bring to boil, then reduce to a simmer and cook for 10-12 minutes. Potatoes should still be a little firm and not mushy. After the 10 minutes, drain into a colander and cool down with cold tap water. Once cool enough to handle, cut into ½ inch cubes.
In the same pan, reheat the bacon fat with the tablespoon of butter between medium-medium low heat. Saute the diced shallot for 5 minutes until soft, then add the green pepper and cook for 2-3 minutes.
Next add the thyme, salt, pepper and the potatoes. Stir once and continue to cook the hash stirring occasionally for about 10-15 more minutes or until potatoes are cooked all the way through.
Lastly add crumbled bacon pieces to potato hash, toss and serve.