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In a large skillet, cook chopped bacon over medium-low heat until crisp. Remove bacon from pan with a slotted spoon; drain on paper towels. Reserve the bacon drippings.
Working in batches, add ¼ cup bacon drippings, potatoes, onion, salt and pepper to pan; toss to coat. Cook and stir over medium-low heat until potatoes are golden brown and tender, 15-20 minutes, adding more drippings as needed. Stir in cooked bacon; serve immediately.