Preheat the oven to 400 degrees. Spray a 1 1/2 or 2 quart baking dish with cooking spray.
Peel the potatoes and slice them as thinly as possible. Arrange them in the dish so that they are standing up. Place the thinly sliced shallots in between some of the potato slices and sprinkle the rest on top.
Drizzle the potatoes with the melted better then sprinkle with salt and pepper.
Bake for 45 minutes.
Remove the potatoes from the oven and sprinkle the goat cheese and bacon on top of the potatoes. Bake for an additional 15-20 minutes or until the potatoes are cooked through.
Meanwhile, heat the vinegar and garlic in a small saucepan over medium high heat. Bring to a boil then reduce to a simmer. Simmer for 15-20 minutes or until the vinegar has reduced to 1/4 cup.
Once the potatoes are finished drizzle the balsamic reduction over top of them and serve immediately.