MICROWAVE potatoes and water in 2-qt. microwaveable dish on HIGH 10 min. or until potatoes are tender. Let stand 5 min.
DRAIN potatoes; place on work surface. Flatten to 1/2-inch thickness.
HEAT dressing in large skillet on medium heat. Add potatoes; cook 4 min. or until bottoms are golden brown. Turn potatoes; top with cheese and bacon. Cover; cook 2 min. or until cheese is melted.