To smoke the potatoes: Think of the smoker as an oven. It should take about an hour or so to cook the whole potato. Poke several holes in each potato with a fork and set them on the grill – indirect heating set up. Once it's cooked, take it off the grill and let it cool.
Cook the bacon in a pan on the stove. Make sure it’s crunchy, but not overdone. KEEP the grease.
Cook the onions in the grease until they are transparent. Add 2 tablespoons of flour. Then add the sugar, salt, celery seed and pepper until it’s bubbly.
Slowly add in the vinegar. I’d say 1/3 cup is a good tartness. But, if you like your Potato Salad tart, keep adding vinegar. Let the mixture boil for a minute, stirring it constantly,then turn it off. Now that the potatoes have cooled, take off the skin and slice them into about 1/2 inch round slices. Some may fall apart a little bit, and that’s ok – just put those on the bottom.
Lay 1 layer down in your 9 x 13 casserole dish. Pour on some of the sauce, just enough to cover potatoes. Then layer some more potatoes. Keep going until you’re out of potatoes.
Crumble the bacon on top of the whole thing. I prefer my German Potato salad either room temperature or slightly warm, so I tend to do this right before serving.