Step 1: To make the dough, whisk together the flour and salt in the bowl of a standing mixer (or regular mixing bowl). Whisk together the egg, sour cream, and water until combined, and then pour over the flour. Stir together the liquids and the flour with a wooden spoon or spatula until a shaggy dough is formed.
Step 2: Knead the dough in the mixer on low speed with the dough hook attachment until the dough is very smooth and soft, about 5 minutes. Alternatively, knead by hand against the counter for 8 minutes. If the dough seems very sticky after a few minutes of kneading, add a tablespoon of flour at a time until it starts coming together into a smooth ball. Cover and set aside to rest on the counter while you make the filling.
Step 3: To make the filling, place cut potatoes in a 2- or 4-quart sauce pan. Cover with an inch or two of water and set over high heat. When the water comes to a boil, reduce the heat to medium-low and simmer until the potatoes are tender when pierced by a fork, 6 to 10 minutes.
Step 4: Transfer the potatoes to a mixing bowl with a slotted spoon. Mash the potatoes into large chunks with a potato masher or a dinner fork. Add the sour cream and salt, and continue mashing until the potatoes are smooth. Add the sauerkraut and cheese, and cooked bacon, if using, and stir to combine. Taste and add more salt if needed.
Step 5: Shape the filling into 1" balls (about the diameter of a quarter) and arrange them on a dinner plate. Pre-shaping the filling makes it easier and quicker to shape the pierogi. I always make 40 balls.
Step 6: Sprinkle a baking sheet generously with flour. Set this near your workspace.
Step 7: Divide the pierogi dough in half, working with one half at a time and keeping the other half covered. Sprinkle your work surface with flour and roll out the pierogi dough to 1/8" thick. Stop occasionally to lift the dough and make sure it's not sticking to the work surface; use more flour as needed. If the dough shrinks back as you roll, let it sit for 5 minutes and then roll again.
Step 8: Use a 3" biscuit cutter or drinking glass to cut the dough into rounds. Gather the scraps and set them aside.
Step 9: To shape the pierogi, hold one of the rounds of dough in the palm of your hand and set a ball of filling in the middle. Fold the round in half, pinching it closed at the top and then working your way along the sides to form a half-moon shape. Make sure the edges of the dough are completely sealed. Set the pierogi on the floured baking sheet.
Step 10: Continue to shape pierogi with the remaining rounds of dough. Lay them close together on the baking sheet, but don't let them touch. Roll out the second half of the dough, and cut and shape the pierogi as described. When finished, roll the scrapes and continue to make as many pierogi as you can. You should end up with 40 pierogi.
Step 11: At this point, the pierogi can be boiled and served right away or frozen. To freeze, place the sheet pan of pierogi in the freezer and freeze until solid. Transfer the frozen pierogi to a freezer container and freeze for up to three months. Pierogi can be cooked straight from the freezer.
Step 12: If you're ready to eat these right away, bring a large pot of water to a vigorous boil. Salt generously. Working in batches, add 10 or so pierogi to the boiling water and stir to make sure they don't stick to the bottom. Cook the pierogi until all the pierogi have floated to the surface, about 3-4 minutes. If you're cooking frozen pierogi, they will obviously take longer.
Step 13: You can eat these straight out of the water, but some people like to fry pierogi in butter before serving. Not necessary, but I like to do it (although I use bacon fat). Just heat 2 tablespoons of butter or lard in a large pan and fry the pierogi for about 4-5 minutes on each side.
Step 14: You can also serve these topped with many different tasty things. I like caramelized onions, even more crispy bacon or a simple sour cream & horseradish sauce (2 parts sour cream, 1 part prepared horseradish).
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