Scrub the potatoes clean and put them into a large pot. Fill the pot with cold water about 2 inches over the potatoes. Place the pot on the stove and bring it to a boil.
Reduce the heat to medium-low and simmer for 20-30 minutes until the potatoes are fork-tender. It can take more or less time to cook depending on the size of the potatoes, you want to use potatoes that are around the same size.
Drain the potatoes and place them back into the pot off the heat so the excess moisture can evaporate.
While the potatoes are cooling, cook the bacon over medium-low heat in a 12-inch skillet with deep sides until crispy. Take the bacon pieces out to drain on a paper-towel-lined plate, set aside.
Once the potatoes are dry, dice them into bite-sized pieces, set aside. Be careful, they may still be hot.
Leave the bacon grease in the pan, there should be about ⅓ cup of bacon grease. Sauté the shallots until softened (about 2-3 minutes) stirring occasionally.
Add the garlic and cook until fragrant, stirring constantly for 30 seconds. Add the vinegar, stock, sugar, mustard, and black pepper, stir to combine. Let simmer for 1-2 minutes to reduce slightly then add in the cut potatoes and the bacon.
Stir to combine and coat everything in the sauce. Take off the heat, garnish with parsley and serve.
We like to use red potatoes for this recipe but you can also use Russet or Yukon gold.
Shallots can be replaced with a sweet onion.
This is meant to be served warm or room temperature.
German Potato Salad can be stored in an airtight container in the refrigerator for up to 4 days. To reheat, just place in the microwave until heated through. I don't recommend freezing.