Preheat the oven to 400F.
Heat half of the oil until very hot in a large cast iron skillet (or other ovenproof skillet). Add the bacon and cook for 5-6 minutes, turning once, until crisp. Remove from the pan and set aside to cool slightly, then chop into small pieces.
Add the rest of the oil to the pan. Heat until very hot again, and add the potato chunks. Sprinkle with the salt and pepper and mix together so that the potatoes are covered in the oil. Try to loosen any bits left in the bottom of the pan after cooking the bacon.
Place in the oven and cook for 15 – 20 minutes, then turn the potatoes over and cook for a further 5 minutes.
Add the onions and peppers to the pan. Toss to combine everything and place back in the oven for 5-10 minutes until the onion and potatoes are tender.
Sprinkle on the bacon and cheddar and place back in the oven for 2 more minutes to melt the cheese.
Remove from the oven and sprinkle with the chopped scallions before serving.