Via The Splendid Table: Potato Hash with Bacon and Melted Onions
Partial technique:

Meanwhile, square off the sides of the potatoes to give them a rectangular shape and cut into ?-inch dice. They may not all be perfectly square, and a bit of skin left on the cubes is also fine.
Add half the potatoes to the hot oil and cook for about 8 minutes, until tender and a rich golden brown; they will not be crisp. Remove from the oil with a wire skimmer or slotted spoon and drain on the paper towels. Repeat with the remaining potatoes.
Pour 2 tablespoons water into a medium saucepan and set over medium heat (the water will keep the bacon from crisping as the fat begins to render). Add the bacon, reduce the heat to medium-low, and let the bacon render its fat for 30 minutes. The bacon will color but not become completely crisp.

Okay, the potato method is one I’ve used before; it’s just twice-cooked potatoes. I’ve never heard of cooking bacon in water. This looks really really good.