Cut bell peppers into 2-inch-long thin strips; chop onion, and cut bacon into 1-inch pieces.
Cook bacon in a large skillet until crisp. Add bell pepper, onion, and cabbage, tossing gently.
Combine vinegar and next 6 ingredients in a jar; cover tightly, and shake vigorously. Add to vegetable mixture, stirring gently. Bring to a boil; cover, reduce heat, and simmer, stirring occasionally, 8 minutes or until cabbage is tender. Serve immediately.