1. Preheat the oven to 190 °C and grease a baking tin of about 25×35 cm with butter or oil.
2. Dice the bacon small, render it in a frying pan, then add the finely chopped onion and fry for 8 minutes until golden brown; set a third aside for serving.
3. Bring the milk to the boil. Peel the potatoes, grate them finely and quickly, squeeze out a little of the liquid and immediately pour the hot milk over them – this stops the potatoes from turning brown.
4. Stir in the beaten eggs, the bacon and onion with their rendered fat, the salt and pepper, and spread the mixture evenly in the tin.
5. Bake for about 1 hour, until the top is deep brown and crisp and the centre has set (a knife inserted should come out without raw mixture); let it cool for 10 minutes so it slices neatly.
6. Cut into squares and serve with sour cream and the reserved bacon and onion; pickled cucumbers or beetroot salad go well alongside.
Tip: Kugelis is excellent the next day too: many people like the slices even more fried until crisp on both sides in a little fat.
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