Place potatoes and water in 2-qt. microwaveable dish.
Microwave, uncovered, on high 10 minutes or until potatoes are tender. Let stand 5 minutes.
Meanwhile, cook bacon in large nonstick skillet on medium heat 8 to 10 minutes or until crisp, turning frequently. Drain on paper towels.
Drain potatoes; place on work surface. Press each potato with bottom of small bowl or saucer to flatten to 1/2-inch thickness.
Heat dressing in skillet on medium heat. Add potatoes; cook 4 minutes or until bottoms are golden brown.
Meanwhile, crumble bacon.
Turn potatoes over; sprinkle evenly with cheese and bacon. Cover skillet with lid. Cook an additional 2 minutes or until cheese is melted.