Cut up bacon in bite size pieces and fry with chopped onion. Meanwhile, put on large pot of water to boil. Peel potatoes, cut and grind up in a blender (If the mixture is too dry to blend, add the egg). In a large bowl, gradually mix flour with potato mush until loose batter is formed. Put a large scoop of the batter on a flat surface. Holding the flat surface in one hand, use a fork with the other, pushing finger-size dumplings in the boiling water (They will rise as they cook). Gently stir, so they don't stick. After the dumplings are all cooked, drain them in a large colander and put them in a large serving bowl. Drain sauerkraut in colander, under cold water, squeezing out excess. Add sauerkraut, cooked bacon and onion to dumplings. Mix gently. Salt and pepper to taste.
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