German-Style Apple and Cabbage

4 cups water
8 cups shredded red or green cabbage
5 cups peeled and sliced Granny Smith apples
4 slices bacon, chopped
1 cup sliced onion
2 tablespoons cider vinegar
2 tablespoons sugar
1/2 teaspoon crushed fennel seed
1/4 teaspoon ground black pepper

1. In large pot, heat water to boiling; add cabbage and apples. Simmer 5 minutes or until cabbage is barely tender. Drain and transfer cabbage and apples to serving bowl.

2. In same pot, fry bacon 2 minutes. Add onion and cook until onion is tender and bacon crisps. Stir in vinegar, sugar, and fennel seed. Cook 2 minutes. Stir mixture into cabbage and apples; serve warm.