In a large stockpot bring water to a boil. Place the potatoes in the water and cook until the potatoes are tender. Drain the potatoes and run cold water over them. Pull the skins off the potatoes and place in a large mixing bowl.

Place the bacon in a large skillet. Cook for 5-7 minutes or until brown and crispy. Remove to a paper towel lined plate. Drain the grease then finely chop and set aside.

Melt the butter in a medium skillet. Add in the onions and sugar and cook over medium low heat for 20 minutes, stirring occasionally, or until the onions have caramelized. Set aside.

Pour the cheddar cheese into the mixing bowl with the potatoes. Use a potato masher and mash the potatoes and cheese together until smooth. Add in the bacon and onions and mix until well combined. Put the bowl with the potatoes in the refrigerator until ready to use.

Put the flour in a large mixing bowl. Dig a well in the center of the flour and add in the eggs. Begin to mix the dough. Add in the water and continue mixing. Add in the salt, olive oil, and butter. mix until the dough just comes together.

Turn the dough onto a floured surface and knead for 10 minutes, adding additional flour or water as needed. The dough with be firm and smooth.

Roll the dough into a cylinder. Cut off a piece that is 2 inches by 1 inch. Using a pasta roller set on 1 roll the dough out. Then put the dough through the rollers on the 3 setting and then the 4 setting. If you can, get it through the 5 setting as well. If not, don't worry.

Once the dough is rolled thin, use a 3 inch biscuit cutter to cut out rounds. Place the round on a floured cutting board.

Place a heaping tablespoon of the potato filling into the center of each round. Pull one side of the dough round up and over top of the filling. Press down on the edges to seal. The piergoies should be in a half moon shape. Use a fork to crimp the edges of the pierogi. Set aside.

Continue until all of the dough or filling is used. Then bring a large pot of water to a boil. Drop in 8 pierogies at a time and cook for 4-5 minutes or until they float to the surface. Using a slotted spoon remove the pierogies and place on a cookie sheet to dry.

Flip the pierogies over after the tops have dry in order to dry the under side. Once they have dried pack them into gallon sized freezer bags, one dozen in each bag. My aunt likes to pour melted butter over top of hers before freezing but I like to leave mine plain.

If freezing place directly in the freezer. Pierogies can be frozen for up to 4 months. When ready to eat simply remove the frozen pierogies and cook in boiling water for 4-5 minutes or until heated through. You can also thaw the pierogies in the refrigerator over night and then fry in butter or steam in a pot for 3-4 minutes.

Note: Potato and cheese filling can be made the night before and refrigerated. The process from start to finish can take anywhere from 3-5 hours so make sure you have plenty of time to dedicate to the pierogi making process.