Place potatoes into a pot and fill the pot with cold water until potatoes are completely covered. Bring water to low boil, add some salt, and cook until potatoes are fork-tender.
Strain off all the water and let potatoes cool on the cutting board until you can handle them.
While potatoes are cooking, prepare bacon, shallots and dressing.
Dressing:
Dice bacon while it's still cold and slice the shallots.
Preheat a cooking pan over medium heat and add oil. Add bacon and cook until bacon fat just to render.
Add shallots and cook until bacon is completely done and all fat is rendered.
Mix in broth, vinegar, Dijon mustard, brown sugar, garlic powder, salt, and pepper. Simmer for just about a minute and take off heat.
Potato salad:
When potatoes are cooled enough to handle, cut them into about 1/2-inch pieces and add to a mixing bowl.
Pour in the dressing mixture from the pan over the potatoes, add parsley, and gently mix to combine.
Serve right warm.
Storing:
Store German potato salad in an air-tight food storage container, in the refrigerator. It should be good for 3-4 days. I do recommend that you reheat it until it's warm when needed. Since there is bacon and some bacon grease from cooking in the salad, it will be much more pleasant to eat warm.
Video
Notes
Cooking for a crowd? Feel free to double this recipe when cooking for a bigger event!
Cook potatoes whole! You only cut potatoes before boiling them when making mashed potatoes. For any potato salad, cook them whole! When they are cooked quartered, they will take in a lot more water than needed and become quite mushy.