In a large skillet, cook bacon until crisp. Remove to paper towels to drain. Crumble bacon and set aside.
In reserved bacon fat, cook onions and bell peppers until limp, about 5 minutes. Add shredded cabbage and cook until limp, but not soft, about 3 to 5 minutes. Add chili powder and salt, to taste. Add tomatoes and simmer just until warmed through. Slaw should be slightly crisp. Adjust seasonings. Serve quickly with crumbled bacon.
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