Begin by draining the sauerkraut in a colander, allowing any excess liquid to escape. Reserve about half a cup of the brine for later use. Set the drained sauerkraut aside.

In a large skillet over medium heat, cook the diced smoked bacon in pork lard until crispy, about 5-7 minutes. Remove and set aside. Sauté diced onions in the rendered fat for 3-5 minutes until softened.

Stir the drained sauerkraut into the skillet with the sautéed onions, followed by the caraway seeds, granulated sugar, and all-purpose flour. Mix well and fold in the reserved crispy bacon.

Pour in the reserved sauerkraut brine or water to the skillet, incorporating enough to maintain the desired sourness. Stir thoroughly to combine all ingredients.

Cover the skillet and reduce the heat to low, allowing to simmer gently for about 30 minutes. Stir occasionally to ensure even cooking.

Taste the braised sauerkraut and adjust seasoning with additional salt if necessary. Serve warm as a delightful side.