Cook and stir onion and bacon in large skillet on medium heat until bacon is crisp and onion is tender.
Drain, reserving 1 Tbsp. of the drippings in skillet.
Prepare Mashed Potatoes according to package directions.
Add onion mixture, flour and egg; mix well.
Heat reserved bacon drippings in skillet. For each pancake, spoon 1/4 cup of the potato mixture into skillet; smooth with back of spoon to create a 3-inch patty. Cook 2 minutes on each side or until crisp and golden brown on both sides.