In a large skillet cook bacon over medium-high heat until crisp. Crumble and set aside.
Reserve 2 tablespoons drippings in skillet. Cook onion and garlic in reserved drippings over medium heat until tender, stirring occasionally. Stir in sauerkraut, potatoes, water, white wine or apple juice, brown sugar, bouillon granules, caraway seed, and bay leaf. Add up to 1/2 cup more water, if necessary, to cover potatoes. Bring to boiling.
Score bratwurst; add to sauerkraut mixture and reduce heat. Cover and simmer for 20-30 minutes or until potatoes are just tender, stirring occasionally. Add the sliced apple; cover and cook for 5-10 minutes more or until apples are just tender. Remove bay leaf.
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