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Quarter, core and thinly slice cabbage crosswise (to yield 8-9 cups). Rinse and set aside. In a 5-quart stockpot, heat olive oil over medium heat. Add onion and sauté until begins to color, 5-7 minutes. Add apple and cook until softened 2-3 minutes. Add cabbage and toss to mix well. Cover pot and reduce heat to medium-low. Cook cabbage until wilted, about 10 minutes. Stir in sauerkraut, balsamic, honey and bacon. (If cabbage gets too dry - add 1/4 - 1/2 cup of reserved sauerkraut liquid).
Reduce heat to low, and simmer cabbage, stirring occasionally, until very tender, about 30 minutes. Taste and adjust seasoning with salt, pepper, balsamic or honey. Serve warm or hot.
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