Place bacon in 2-quart casserole.
Cook covered with one or two paper towels, 2 1/2 to 3 minutes or until crisp.
Remove paper towel and bacon, leaving extra drippings in casserole.
Add potatoes and 1 2/3 cups water.
Cook covered, 6 minutes.
Stir in crumbled bacon and remaining ingredients except bologna, mixing well.
Arrange evenly in casserole.
Top with ring of bologna.
Cook covered, 4 minutes, 30 seconds or until hot.