Scrub the baby red potatoes under cold water to remove any dirt. Place them in a large pot, cover with salted water, and bring to a boil over high heat. Once boiling, reduce the heat to medium and let them simmer for about 15-20 minutes, or until fork-tender but still firm. Drain and set aside to cool slightly.

Chop the bacon into small pieces. In a large skillet, cook the chopped bacon over medium heat until it becomes crispy, about 5-7 minutes. Once cooked, remove the bacon with a slotted spoon, placing it on a paper towel-lined plate to drain, and reserve about 2 tablespoons of the bacon fat in the skillet.

Add the sliced green onions and chopped dill directly into the skillet with the reserved bacon fat. Sauté over medium heat for about 2 minutes until fragrant and slightly softened.

In a mixing bowl, combine the sour cream with the sautéed green onion and dill mixture. Add in the crispy bacon, stirring everything together until well-mixed.

Once the potatoes have cooled slightly, cut them into bite-sized pieces or leave them whole. Gently fold the warm potatoes into the creamy sauce until each piece is generously coated.

Transfer the coated potatoes to a serving dish. Serve immediately while warm, garnishing with extra chopped dill or green onions if desired.