Step 1: In a wide frying pan, cook bacon over medium heat until crisp and browned.
Step 2: Lift out bacon, break into pieces, and set aside.
Step 3: To drippings, add walnuts and cook, stirring, over medium heat 1 to 2 minutes or until lightly browned; set nuts aside.
Step 4: Discard all but 2 tablespoons drippings.
Step 5: Add potatoes and onions and cook, stirring, over medium-low heat until potatoes are soft to bite but only slightly browned (about 10 minutes); remove from pan and set aside; keep warm or reheat.
Step 6: Clean frying pan to remove any browned particles, then melt butter over medium-low heat.
Step 7: Pour in eggs, pushing them from bottom as they set, allowing uncooked portion to flow down under.
Step 8: When top of omelet is almost set but still a little liquid-looking, sprinkle evenly with potatoes, diced cheese, bacon pieces, shredded cheese, and parsley.
Step 9: Mound sour cream in center of omelet.
Step 10: Garnish with toasted walnuts.
Step 11: Cut into wedges to serve.
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