Fill a pot with cold water to cover the potatoes.

Bring to a boil, lower the heat, and simmer until potatoes are fork tender, about 5 to 8 minutes depending on their size. Drain.

Wash and scrub potatoes. Cut potatoes in bite size chunks (or if you prefer, you can cut them into potato slices). Add a steamer basket into the Instant Pot. Add 1 cup of water and the potatoes.

Lock lid in place, and pressure cook for 15 minutes. Do a natural pressure release for 5 minutes, then a quick release. Drain the potatoes.

In a large skillet or in your Instant Pot, fry the bacon until crisp, remove and set aside to drain on a paper towel.

Drain all but 2 tablespoons of the bacon fat. Add onion to the pan with the drippings and cook until tender.

Add vinegar and water, cook until bubbly. Add sugar, salt and pepper and stir to dissolve. Allow to reduce and then remove from heat.

Place cut potatoes in a large bowl and allow them to sit for 15-20 minutes until slightly cooled but still warm. Pour the warm salad dressing over the potatoes. Gently stir to combine. The potatoes will soak up the dressing as they sit. Crumble bacon and add to the potatoes along with chopped parsley.
Serve warm.