Meanwhile, cook and stir bacon in large skillet on medium heat until crisp. Remove bacon from skillet with slotted spoon; drain on paper towels. Add onions to bacon drippings in skillet; cook and stir 2 min. or until crisp-tender. Add water; stir to scrape browned bits from bottom of skillet. Add cabbage; mix well. Cover; cook 7 min. or until cabbage is tender and water is cooked off, stirring occasionally.