1. In a medium pot, add 2-3 cups of water, with a dash of salt, and boil.
2. Once boiling, add whole red skin potatoes (make sure they have been scrubbed clean). Potatoes should be covered with water, add more if necessary. Cook until tender (about 15 minutes).
3. Remove potatoes and allow to cool until they are comfortable to handle (about 30 minutes).
4. Meanwhile, in a medium pot, add 2 cups of water. Add unshelled eggs. Bring water to a boil. Once boiling, remove from heat immediately. Let eggs stand in pot with water for 10-15 minutes. Remove from water, peel and discard shell, crumble egg whites and yolk, set aside.
5. Dice potatoes into cubes, keeping the skin on the potato. Place cubed potatoes in a medium sized bowl.
6. Add crumbled eggs, bacon bits, shallots, celery, mayonnaise, salt and pepper to bowl with potatoes. Gently stir.
7. Cover and refrigerate for at least 1 hour before serving.
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