Arrange sauerkraut in a heavy saucepan and add just enough water to cover. Bring to a boil, then reduce heat and simmer gently for 15 minutes.

Meantime, cook bacon in a heavy skillet until crisp, remove and set aside. Add onion to drippings and cook untill transparent, not brown. Add flourand blend. Add to sauerkraut with bacon and caraway seeds, if used. Blend. Add a small amount of sugar to mellow flavor, if desired. Simmer for 5 minutes or until juices are thickened.