Drain sauerkraut and pour in a large pot with bay leaves and peppercorns. Add just enough water to cover. Boil over low heat for half an hour.

Add the dried mushrooms to a half cup of water in a small saucepan, bring it to a boil, cover with lid, turn off heat, and let them soak until ready to add to the sauerkraut.

In a pan, fry up your bacon til crisp, not burnt. Pour bacon and its grease into a container and set aside. Saute onions in the same pan with the remaining grease. Place onions in a container and set aside. Saute sausage in the same pan til a bit browned.

When sauerkraut has finished boiling, drain and remove the peppercorns and bay leaves. Add the bacon, onions, sausage, and soaked mushrooms at this time. Add all of the mushroom liquid or half of it to the pot. Mix well and simmer all ingredients for another half an hour to forty five minutes, until all the liquid cooks out. Make sure you stir occasionally to prevent sticking. Serve right away. Sauerkraut will last three days in an air-tight container in the refrigerator.