Cook the potatoes to your liking (you may boil them, unpeeled, or microwave them until tender). Leaving the skin on, slice or cube the potatoes into bite-sized pieces.

In a medium skillet, heat the olive oil over medium heat, then add the onions. Saute the onions slowly, stirring and reducing the heat if necessary to prevent charring, for about 5 minutes or untiil translucent and very tender.

Add the flour, sugar, salt, celery seed, and pepper to the onion mixture. Cook over low heat, stirring until smooth and bubbly.

Remove from heat and stir in water and vinegar, continuing to stir untiil the mixture is well-blended. Then bring back to a boil, stirring constantly, for one minute. The mixture should be thick.

Pour the dressing over the potatoes. Stir and garnish with fresh dill or other fresh herbs. Serve warm.