In a medium skillet on medium high heat sauté shallot in olive oil for 5-6 minutes, until soft and golden. Add the grated potatoes, season with salt and pepper. Toss for 7-8 minutes or until potatoes are golden and cooked through. If pan gets too dry before they are tender just add a tablespoon of water to steam them slightly. Sprinkle with chives.
Serve a spoonful of potatoes with a dollop of sour cream and crumbled bacon.