Mix all the ingredients together in a small bowl and set aside.
Add potatoes to pot of salted cold water. Bring to a boil, over high heat, then reduce heat to a simmer and cook for 20 minutes until tender. Drain and place in a large bowl. Cover with foil to keep warm, if necessary.
Add bacon to large saute pan and cook until crisp over medium heat. Remove to a paper towel-lined sheet tray and reserve. Add onion, dash of pepper and garlic to bacon grease and saute until tender, about 3 minutes. Add vinaigrette to vegetables. Let cook until reduced and thickened, about 2 to 3 minutes.
Add potatoes, dill and bacon to the pan and toss to coat with dressing. Allow to cook for 3 minutes. Season, to taste, with salt and pepper. Transfer potato salad to a serving platter and sprinkle with chopped fresh dill.