Cook the bacon in large pot over medium heat until almost crisp. Remove the bacon from the pot and set aside. Melt the butter in the pot with the bacon grease. Add the cabbage, stirring well to coat the cabbage in fat. Add about 1/3 cup water, and salt and pepper, to taste. Cover pot with a lid, and cook over medium heat for about 10-15 minutes. Meanwhile, chop the bacon into small pieces.
Remove the lid from the pot, and scatter chunks of corned beef and chopped bacon over top of the cabbage. Cover and cook until desired doneness. I personally like a little bit of crunch left to the cabbage.
Tip: Cabbage is one of those vegetables that naturally contains water in its leaves. Begin by adding just a small amount of water. As cabbage cooks, if it needs more liquid, then add more water.