Place the cubed potatoes in a large saucepan. Add cold water to the pan, covering the potatoes by one inch. Place the pan over high heat and add 2 teaspoons kosher salt to the water. Bring the mixture to a boil. Reduce to a simmer and let cook for 12–14 minutes, or until the potatoes are fork tender. Drain.
Meanwhile, place the 2 eggs in a small saucepan. Add cold water to the pan, covering the eggs by one inch. Place the pan over high heat and bring to a boil. Once the water boils, cover the pan and turn off the heat. Let the eggs sit for 10 minutes. Drain the eggs and place in a bowl of ice water. Allow to cool. Peel the eggs by gently tapping the egg on the countertop until the shell is cracked all over. Slide your thumb under the cracked shell and gently remove all pieces of shell from the egg. Chop one egg and slice the other one thinly.
While the potatoes and eggs are cooking, place the bacon in a large skillet over medium heat. Cook the bacon, flipping occasionally, until crisp. Remove the bacon and place on a paper towel lined plate. Set aside. Do not drain the bacon grease.
Add the onion and celery to the bacon grease and cook until soft, about 4–5 minutes. Add 1 tablespoon flour and cook, stirring occasionally, for 1 minute. Add the white wine vinegar, water, sugar, dry mustard, and remaining 1½ teaspoons salt. Cook for 2–3 minutes until the mixture thickens slightly. Turn off the heat.
Add the potatoes to the onion and vinegar mixture, and stir to combine.
Crumble the bacon and stir half of the bacon into the potato mixture.
Transfer the potato salad to a serving dish and top with the remaining bacon, sliced hard boiled egg, and chopped chives. Serve hot, at room temperature, or cold.
Video
Notes
Red potatoes are traditional for this recipe and hold their shape when cooked. I don't recommend substituting another type of potato.You do not need to peel the potatoes. The red peel adds a beautiful color to the finished dish.You can substitute 1 teaspoon of Dijon mustard for the dried mustard.The recipe can be served hot, at room temperature, or cold. It will keep the refrigerator for 3–4 days. To reheat, place it in a large skillet over medium heat, and heat until warm.