Place a large, heavy-bottomed skillet over medium heat. Add the bacon pieces and cook until they are crisp. Remove the bacon pieces with a slotted spoon and set them aside, leaving the rendered bacon grease in the skillet.
Add the sliced onion to the hot bacon grease. Cook the onions for 3 to 4 minutes until they soften.
Add the sliced cabbage to the skillet. Sprinkle with salt and pepper. Toss the cabbage with the onions and bacon grease.
Cook the cabbage, stirring occasionally, for about 5 minutes until it begins to wilt.
Pour the water or broth into the skillet. Cover the skillet and reduce the heat to medium-low. Let the cabbage steam for 8 to 10 minutes, or until it reaches your desired tenderness. You want it tender but not mushy.
Remove the lid and increase the heat to medium. Cook for 1 to 2 minutes more, stirring constantly, to allow any remaining liquid to evaporate and let the cabbage edges brown slightly.