Step 1: Place the squash in a large saucepan with enough water to cover. Add sugar and 1 tablespoon salt. Cook uncovered at a low boil until the squash is very tender when pierced with a fork, about 10 minutes. Drain and place the squash in a medium mixing bowl. Mash thoroughly with a potato masher. Set aside.
Step 2: Fry the bacon in a large skillet until crisp. Remove and set aside on paper towels to drain, saving drippings. Add the onions to the drippings in the skillet and cook over medium heat until soft and just beginning to brown, about 4 minutes. Add the squash and cook for several minutes, stirring constantly. Add 1 teaspoon salt and white pepper. Crumble the bacon and stir in. Taste for seasoning and add more salt and pepper, if necessary. Serve hot.
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