In a medium stock pot or Dutch oven fry the bacon until done. Add the onions and cook over medium-high heat until golden. Add the bell peppers and garlic and cook for another two minutes. Add the pork and cook for a minute until some, but not all, of the pink is gone. Stir in the paprika and remove from heat.
Add the remaining ingredients except for the sauerkraut and sour cream. Add just enough water to barely cover the mixture. Return to heat and bring it to a boil. Cover, reduce the heat to medium-low and simmer for 90 minutes. Stir in the sauerkraut, return to a simmer, cover and simmer another 2 minutes. Add salt to taste.
Serve with a dollop of sour cream and swirl it in the soup before eating. Serve with crusty bread, Homemade Spätzle and/or a leafy green or cucumber salad. This goulash is even better the next day.