| In a large heavy skillet, cook bacon until well done and crisp. Remove from skillet. Drain on paper towel. Crumble and reserve.
Pour off drippings and add peppers to skillet where you cooked the bacon. Cook 5 minutes or until liquid has evaporated.
Add tomatoes, olives, powders, water and potatoes. Bring to boiling and cook uncovered, stirring occasionally for 20 minutes or until fork-tender. Stir in capers.
Let stand 5 minutes to allow liquids to absorb. Stir in crumbled bacon and serve. Add more capers for garnish if desired.
Serve warm with green vegetable. (Also may be served at room temperature on a bed of green salad)
Makes 9 cups, which serves 6-8